Hedge Fund Bullishness on Oil has wiped out the spread between Brent Crude and WTI
Over the last 6 weeks West Texas Intermediate ( WTI ) has been up by more than 11% whereas Brent Crude is just up by a 5% . This price movement has completely wiped out the spread between WTI and Brent Crude which at one point was as high as $20. Right now WTI is trading at 107.64 and Brent at 108.64.
This price movement is attributed to a stronger dollar and the emergence of US as a major oil producing country.
My trading tip:
Oil moving higher by 12% in a period of 6 weeks tells me that prices are going to come down to $100 in the next coming days. Hence short Oil and Long Equities will be my stand.
Over the last 6 weeks West Texas Intermediate ( WTI ) has been up by more than 11% whereas Brent Crude is just up by a 5% . This price movement has completely wiped out the spread between WTI and Brent Crude which at one point was as high as $20. Right now WTI is trading at 107.64 and Brent at 108.64.
This price movement is attributed to a stronger dollar and the emergence of US as a major oil producing country.
My trading tip:
Oil moving higher by 12% in a period of 6 weeks tells me that prices are going to come down to $100 in the next coming days. Hence short Oil and Long Equities will be my stand.
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