CTAs may still sell WTI crude this session – TDS

Quiet markets have resulted in substantial price impacts due to recent views in Commodity Trading Advisor (CTA) positioning, notes Senior Commodity Strategist Daniel Ghali.

Prices are rebounding

“Massive algorithmic buying activity earlier in the week turned into large-scale selling activity. Prices are rebounding this morning, but under the hood, the combination of a likely CTA selloff, a renewed decline in energy supply risk premiums and deteriorating commodity demand sentiment still point to lower prices.”

“CTAs could sell up to -12% of their maximum size as they completely liquidate recent longs and build a net short.”