Oil’s fundamental backdrop is shifting in favor of the bulls. Today’s decline -- brought on by profit-taking and technical trading -- is exaggerated as money managers and traders book profits and close positions ahead of both the month and quarter’s end.
In some cases, bullish views have started to appear in the oil options market where they're seeing a spike in activity at $100 a barrel. This activity indicates that some oil bulls are betting the price could trade around that level by this time next year (via BOE Report).
Anticipation of rising demand, resumed production of U.S. Gulf Coast refineries following Hurricane Harvey, and Turkey’s threat to halt Kurdistan’s crude shipments pushed oil into a bull market this week. WTI Crude is up at $52.65 and Brent Crude is up at $58.35 this morning.
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