rietrot
Honorary Master
- Joined
- Aug 26, 2016
- Messages
- 24,096
Hype and hope.What is required to see a substantial price increase at this moment?
Higher oil prices probably helps.
Hype and hope.What is required to see a substantial price increase at this moment?
(Bloomberg) -- Tens of billions of dollars worth of commodity investments are about to be switched around in a move that’s set to cause a wave of oil-futures buying.
While the move happens every year, crude’s 20% decline in 2020 means that the value of oil index investments has been far below its target for months. As a result, as much as $9 billion of oil contracts could be purchased over the five days of re-balancing that start Friday, according to Citigroup Inc., at a time when the market is already surged to 10-month highs.
RBC Capital Markets estimates that there will be about 80,000 Brent and West Texas Intermediate contracts bought during the re-balancing.
“This buying pressure across the complex should serve as a tailwind and help fortify the improving oil market sentiment,” RBC analysts Helima Croft and Michael Tran wrote in a note.
I am heavy prepared for another big fall session!
Decided to bail on Friday. What are your thoughts? is it going to drop a lot more, or, is it going to go higher?