Crude prices saw a significant uplift in the week ending 16 Sep amid rising geopolitical risk and expectations of an interest rate cut by the US Federal Reserve.
In the week ending 16 Sep, the M1 Brent futures rallied from a low of $66.30/bbl to $68.70/bbl, where it met resistance and eased to $68.50/bbl, its highest close since 2 Sep. Open interest climbed 4.5% w/w to 2,974mb in this week, 9% above the 2020-24 maximum. We subsequently saw prices decline the following week, reaching $66.65/bbl on 19 Sep, with the selling likely exacerbated by longs taking profit.
Similarly, the M1 WTI futures also rallied in the week ending 16 Sep, despite initially selling off from $63.70/bbl to $62.27/bbl on 11 Sep. Prices met support here and climbed to a high of $63.76/bbl on 16 Sep, before easing to $64.55/bbl. However, sentiment turned more bearish thereafter, with prices selling off to $62.60/bbl on 19 Sep. Open interest in WTI futures sat at 1.962mb in the week ending 16 Sep, 20% below the 5-year maximum.
