SaxoTV

Hansen: What shape will an oil recovery take?

545 views
January 27, 2015 barrel, barrels of oil, break-out, brent, brent crude, brent geo-political, brent oil, brent price, brent wti, brent wti spread, bullish, bullish bets, commodities, commodities markets, commodity, commodity market, commodity outlook, commodity prices, commodity strategy, commodity trade, commodity trading, crude, crude oil, crude oil price, crude oil prices, crude price, crude prices, crude spread, crudeoil, etf, etf investment, etf portfolio, etfs, floating storage, hedge, hedge fund, hedge funds, hedgefunds, long, long positions, market, market volatility, markets, oil, oil bounce, oil commodities, oil companies, oil company, oil consumer, oil demand, oil drop, oil gains, oil industry, oil inventories, oil iran, oil levels, oil market, oil markets, oil news, oil outlook, oil price, oil prices, oil producers, oil production, oil range, oil refinery, oil spread, oil stockpiles, oil stocks, oil supplies, oil supply, oil trading, oil wealth, oilsupply, opec, opec intervention, opec meeting, opec news, opec oil price, opec price, opec production, recovery, recovery 2015, saxo, saxo bank, saxo tv, trading, tradingfloor, tradingfloor.com, wti, wti and oil, wti brent, wti brent spread, wti crude, wti crude oil, wti price, wti supply, wti vs brent, wticrude
This week the head of OPEC Abdalla El-Badri said oil prices may have bottomed out and could soon rebound. Saxo's Ole Hansen says there's already been a big move into the market by investors over the last four months, with hedge funds increasing their bullish bets.

So when it comes, what shape will a recovery take? Hansen uses three letters to illustrate what it could look like - LUV. He says that L is the expectation that it will be slow with a long period of sideways trading. A U shape indicates a longer period of consolidation as an oversupply of crude is absorbed. And a V shape would see a sharp bounce as demand increases.

So what shape does Hansen think the market will see? Watch his interview to find out.