Oil: Selling program almost done – TDS

Russia is reluctant to a production cut so the energy market will have to deal with oversupply conditions. Strategists at TD Securities consider commodity trading advisor’s selling program is almost completed with the WTI trading at 50.08 after falling since the start of the year.  

Key quotes

“The energy market will have to contend without an emergency cut from OPEC, as Russia resists the cartel's call for a February meeting.” 

“We estimate that a large scale CTA selling program is nearing completion across the complex.”

“Libya's oil production is sitting at its lowest levels since the Arab Spring, therefore, any sign of a deal to restore nearly 1m bpd of production could add fuel to the fire in energy markets as the market is already struggling to cope with demand concerns and oversupply.”