TD Securities Warns of Short Squeeze Risk in Crude Oil
TD Securities analyst Bart Melek flags that money managers are heavily short crude due to misread market conditions, including excessive pessimism on China demand and misguided oil supply expectations, making positions vulnerable to a squeeze.
Bart Melek of TD Securities cautions that current speculative short positions in crude oil are overextended. He believes money managers have misread market fundamentals, particularly by overly discounting Chinese demand prospects and holding unrealistic views on oil supply.
The analyst argues that this positioning leaves the market exposed to a short squeeze, which could trigger a sharp rebound in prices if conditions shift. The warning comes amid persistent bearish sentiment that Melek considers unjustified by actual supply-demand balances.
Source: FXStreet Forex News