Bloomberg: The US and Iran remained far apart Sunday on a deal to end weeks of war and reopen the crucial Strait of Hormuz, as a drone attack sparked a fire at a United Arab Emirates nuclear plant, spotlighting the risks of a fragile ceasefire.
It is important to understand where WTI positioning is at the moment heading into this week. Positioning across the Energy complex moved modestly lower week-over-week, with WTI now only narrowly holding within the upper quartile. Net selling in WTI has occurred in six of the past seven weeks, leaving positioning near what increasingly looks like a meaningful inflection point. If this positioning cadence persists, it would likely begin to weigh on the underlying itself despite the recent resilience in price action. Importantly, Energy has also relinquished the top spot in the Offsides Macro Narrative Tracker, suggesting the narrative backdrop may be losing some momentum at the margin. Anecdotally, it remains difficult to find — or even hear — anyone meaningfully leaning bearish WTI at current levels.
