BRENT CRUDE OIL FUNDAMENTAL BACKDROP
Brent crude oil opened the week marginally lower after demand side fears continue to overwhelm forecasts despite the recent OPEC+ supply cut announcement. The macro environment has slipped into further turmoil with the eurozone entering the winter months heightening recessionary fears, leaving the regions crude oil demands negligible. Looking at the latest CFTC positioning (see image below), net longs have risen sharply but due to the lag in data, last week’s reaction has likely changed to the downside reflective in the current price.
