Technical & Fundamental Oil Reports Specialists

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Speculative length at an all-time high

Published Tuesday, June 24th, 2014

Are the equity markets running out of steam?It is a question that has been asked on a regular basis for several months with the response being more record highs. One day the question, which is really a statement of opinion, will be right but it will happen when it is least expected. More than likely it will be on a good news day.

Yesterday was a good news day and the equity markets failed to respond. It was PMI day. China’s flash PMI came in at 50.8, Japan at 51.1 and the US at 57.5 all beating expectations. Only the Eurozone disappointed but it was above 50 at 52.8. France is the sick man of Europe coming it at 48 compared to Germany at 54.2.

There can be no doubt that oil speculators are responding to events in Iraq, with net speculative length across WTI and Brent at a combined record high of 621,000 contracts in the week to June 17. WTI is at its highest-even level of 397,693 lots and Brent a tad below its record high at 223,750 lots.

to read the rest of the report, please click here 

Posted by David Hufton