TD Securities Warns Brent Oversold Amid Hormuz Strait Disruptions

TD Securities' Bart Melek has flagged that ongoing disruptions in the Strait of Hormuz have driven crude oil inventories to historically low levels. This supply tightness has left Brent in oversold territory, increasing the risk of a sharp short-covering rebound.

According to Melek, the current positioning suggests the market may be underestimating the potential for a rapid price correction higher as bears unwind their bets.