As Daniel Ghali, Senior Commodity Strategist at TDS, notes, oil markets are seeing an uptick in CTA sales.

CTA is getting rid of all its long Brent crude oil positions

“We expect CTAs to unwind all of their long Brent crude oil positions this session and create a net short position, with additional scope to sell WTI crude oil in the coming week in a bearish scenario.”

“Our statistical analysis of energy supply risk also indicates that supply risk premiums are leaking out of energy markets again, suggesting that investors are strangely ignoring the risk of geopolitical aggression ahead of the weekend.”