Crude Oil Strong buy?
A look at trader positioning in most brokers shows that about 67% of traders expect a rising price. The long-to-short ratio is 2.16. The general net long position confirms the last strong fallen prices.
Compared to the previous week, however, long positions were reduced by about 25% and short positions increased by 34%. Thus, the long-to-short ratio should have fallen sharply in the weekly comparison. The chart below also makes it clear that this trend in positioning has accelerated since the beginning of the year, confirming the current recovery. Here the focus should remain on the short positions. If these increase more quickly than long positions are reduced, the recovery trend could accelerate.
Which factors could influence the oil price in the first quarter?
Beste Grüsse aus Frankfurt am Main