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17 Apr 2015
Increasing level of speculative interest in oil prices a worrying factor – Malcolm Graham-Wood
FXStreet (Barcelona) - Independent Analyst, Malcolm Graham-Wood, comments that the sudden increase in speculative interest in the oil price, with open interest in Brent futures increasing 30% this week, is a worrying factor as the worst is yet to pass.
Key Quotes
“With the expiry of the May Brent contract on Wednesday the last 48 hours has seen quite a swing in prices, indeed at one stage yesterday it nearly reached $65 having been below $58 on Tuesday.”
“Bulls were on the Twitter machine yesterday asking if I had changed my view that the oil price would test the lows before rising again long term and whilst the news is generally better I still think that we are not past the worst quite yet.”
“Finally one thing that does worry me is the level of speculative interest in the oil price at the moment. I have mentioned this a bit recently and I notice that open interest in Brent futures is up another 30% this week to 2 million contracts, not only a level that gives some cause for concern but one that should it have to be reversed in a hurry could cause quite a panic, you have been warned.”
Key Quotes
“With the expiry of the May Brent contract on Wednesday the last 48 hours has seen quite a swing in prices, indeed at one stage yesterday it nearly reached $65 having been below $58 on Tuesday.”
“Bulls were on the Twitter machine yesterday asking if I had changed my view that the oil price would test the lows before rising again long term and whilst the news is generally better I still think that we are not past the worst quite yet.”
“Finally one thing that does worry me is the level of speculative interest in the oil price at the moment. I have mentioned this a bit recently and I notice that open interest in Brent futures is up another 30% this week to 2 million contracts, not only a level that gives some cause for concern but one that should it have to be reversed in a hurry could cause quite a panic, you have been warned.”