The CTAs will continue to sell raw and industrial metals (X-Copper) in most scenarios for prices by next week. During the imminent term, CTA sales activity will continue to weigh on price action in the OPEC meeting, notes the main strategist of TDS raw materials, Daniel Ghali.
Energy demand remains resilient
“While the markets will find it difficult to absorb additional OPEC +barrels, the demand for energy remains resilient, the production of American shale culminates, the Venezuelan export licenses have expired and the geopolitical risks surrounding Iran remain high – which will probably act as a shock absorber to reduce prices for time.”
“Beyond the months of seasonally solid summer, however, OPEC exports should increase more and put pressure on the global gross markets without subsequent disturbance of the offer. The path at permanently higher prices remains extremely close, and although the speculative positioning is down, it is not currently vulnerable to pressure.”
