{"id":1490919,"date":"2024-09-19T19:05:00","date_gmt":"2024-09-19T23:05:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1490919"},"modified":"2024-09-19T19:05:00","modified_gmt":"2024-09-19T23:05:00","slug":"oil-rally-fueled-by-fed-ctas-and-record-shorts-has-room-for-more-gains","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/oil-rally-fueled-by-fed-ctas-and-record-shorts-has-room-for-more-gains\/1490919\/","title":{"rendered":"Oil Rally, Fueled By Fed, CTAs And Record Shorts, Has Room For More Gains"},"content":{"rendered":"<p><span class=\"field field--name-title field--type-string field--label-hidden\">Oil Rally, Fueled By Fed, CTAs And Record Shorts, Has Room For More Gains<\/span><\/p>\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>Oil is up more than $6 from its nadir last week with the latest leg higher helped by the risk-on tone across global markets.<\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/brent%20crude%209.19.jpg?itok=OTwl_cA_\"><\/a><\/p>\n<p>Today\u2019s rally is, as Bloomberg&#8217;s Alex Longley writes, the latest in a bumper run of intraday price volatility for crude, with average daily swings in August and September being the highest since early this year.<\/p>\n<p>Against that backdrop, money managers had been positioned net short in Brent crude for the first time ever. With the Fed\u2019s interest rate cuts assuaging concerns in financial markets, that left oil prices ripe for a rally.<\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/brent%20record%20bears.jpg?itok=qlvsayjM\"><\/a><\/p>\n<p>There could be more to come too: as shown in the Goldman charts below, we are rapidly approaching levels where significant CTA buying could appear.<\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/wti%20conditional%20market%20forecasts.jpg?itok=9cOoTHXr\"><\/a><\/p>\n<p>There\u2019s also continued disruption in Libya where output remains far below a million barrels a day and the storage hub of Cushing, where US crude futures are priced, remains at extremely low levels.<\/p>\n<p>WTI Holds Gains As &#8216;Tank Bottoms&#8217; Loom After Big Draw At Cushing Hub <a href=\"https:\/\/t.co\/TuKqsCL8cr\">https:\/\/t.co\/TuKqsCL8cr<\/a><\/p>\n<p>\u2014 zerohedge (@zerohedge) <a href=\"https:\/\/twitter.com\/zerohedge\/status\/1836414657889804406?ref_src=twsrc%5Etfw\">September 18, 2024<\/a><\/p>\n<p>As Longley concludes, <strong>&#8220;given oil prices regularly overshoot in either direction, it wouldn\u2019t be a surprise to see this recovery rally gain momentum.&#8221;<\/strong><\/p>\n<\/div>\n<p>      <span class=\"field field--name-uid field--type-entity-reference field--label-hidden\"><a title=\"View user profile.\" href=\"https:\/\/cms.zerohedge.com\/users\/tyler-durden\" class=\"username\">Tyler Durden<\/a><\/span><br \/>\n<span class=\"field field--name-created field--type-created field--label-hidden\">Thu, 09\/19\/2024 &#8211; 15:05<\/span><\/p>\n<p>\u200b<a href=\"https:\/\/www.zerohedge.com\/markets\/oil-rally-fueled-fed-ctas-and-record-shorts-has-room-more-gains\" target=\"_blank\" class=\"\" rel=\"noopener\">https:\/\/www.zerohedge.com\/markets\/oil-rally-fueled-fed-ctas-and-record-shorts-has-room-more-gains<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil Rally, Fueled By Fed, CTAs And Record Shorts, Has Room For More Gains Oil is up more than $6 from its nadir last week&#8230;<\/p>\n","protected":false},"author":0,"featured_media":1490920,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1490919","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6fR5","jetpack_featured_media_url":"https:\/\/bugaluu.com\/news\/wp-content\/uploads\/sites\/3\/2024\/09\/brent20crude209.19-7gFL2e.jpeg","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1490919","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1490919"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1490919\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1490920"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1490919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1490919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1490919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}