Oil: 3rd losing week; One of market’s loudest bulls admits buyers have vanished
Investing.com — It’s not everyday that you get to read a Phil Flynn note that’s virtually bearish on oil. But to hear one of the market’s loudest oil bulls admit that people have been fleeing the long crude game like rats abandoning a sinking ship should be a wake-up call to those who kept drumming for a return to $100 pricing in recent weeks.
“The petroleum buyers are gone, unless you are talking oil call options, as supply and demand take a back seat to rising macroeconomic fears,” Flynn wrote as crude futures headed for a third straight week of losses despite rising over the past two sessions after Thursday’s four-month lows.
“Maybe the buyers of oil have been taken away from the mother ship or maybe they have just ridden off into the sunset, but the reality is we are seeing a short oil position of epic proportions as the market seems to remove the risk of ever rising again.”
New York-traded West Texas Intermediate, or WTI, crude for December delivery, settled at $77.17 per barrel, up $1.43, or 1.9% on the day, adding to Wednesday’s 0.5% rise. For the week though, WTI was down 4.1%, after prior back-to-back weekly losses 6% and 3%. That came after the US crude benchmark 11% tumble for October.
As WTI settled, UK-origin Brent crude’s most-active January contract was at $81.66, up $1.65, or 2.1% after Thursday’s 0.6% gain. For the week, Brent was down 3.8%, after back-to-back weekly losses of 6% and 2%. Prior to that, the global crude benchmark lost 11% in October.
With the US 10-YearTreasury yield rebounding over the past two sessions, the Fed may have to offer much higher rates to get investors interested in US bonds — adding to market unease that the central bank’s rate hikes may not be over, said Flynn.
“Underneath
Read more on investing.com
