- Crude oil prices extended recent losses, with March WTI -1.2% at $63.39/bbl for its lowest settlement since Jan. 19 and April Brent -1.1% to $66.86/bbl for a roughly five-week low.
- “Oil prices could not escape the risk-off mood in financial markets. We believe the sentiment cycle has finally turned and see more near-term downside for oil prices," says top Julius Bear commodity analyst Norbert Ruecker.
- Also, the weakness in equities markets and the “rise in risk aversion that this expresses is prompting speculative financial investors to get out of their crude oil forward contracts,” Commerzbank (DE:CBKG) analysts say; speculative net long positions in both Brent and WTI have been near record levels.
- In its monthly short-term energy outlook, the EIA raised its 2018 price forecast for WTI crude by 5.3% to an average $58.28/bbl and forecast this year's U.S. crude production at an average 10.59M bbl/day and 2019 output at 11.18M bbl/day, with both views up 3% from its previous forecasts.
- ETFs: USO, XLE, OIL, UWT, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, DBO, XES, ERY, DIG, BGR, GUSH, DTO, FENY, USL, IYE, DUG, DRIP, IEO, FIF, IEZ, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, USOD, FTXN, JHME, UBRT, ERYY, DBRT, ERGF, USAI
- Now read: Risk-Off And The Oil Market
Original article