Oil prices are on track to their first negative week after having rallied for six consecutive weeks. A solid recovery from mid-April lows that, according to the Commodities’ team at Rabobank, lacks fundamental reasons behind it.

 

Key quotes

“The recent retail buying spree in oil has involved a high degree of emotion and FOMO (fear of missing out) but little to no fundamental or quantitative analysis, as we see it.”

“Many of the popular institutional commodity strategies that we monitor have remained “short” oil throughout recent weeks.”

“Now that oil prices are under pressure, retail investors may be quick to liquidate and especially given the low degree of conviction behind the trade.”