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#SaxoStrats – Selling WTI
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Saxo Bank’s Head of Commodity Strategy Ole Hansen is looking to sell WTI at the top of its current trading range. He says oversupply in the market will continue to put downward pressure on prices.
Crude has seen a recovery over recent weeks, but Hansen says it is premature to bet on a full recovery in oil prices. He says that while US production may be starting to level out, other oil producers have increased theirs which will continue to add downward pressure on prices.
With a lack of upside in sight, and the price of WTI approaching the high end of its current trading range at USD 54, Hansen sees an opportunity to sell.