The dollar’s gyrations remain a key source of inspiration for traders with the fundamental focus continuing to switch between falling U.S. and rising OPEC production, according to Saxo Bank’s Ole Hansen . The nervousness and negative price action seen this week was triggered by a change in focus from falling U.S. production towards the rising supply from others, especially within OPEC. Having seen calendar 2017 almost hit $50 last week the realization that further upside may be hard to achieve may have helped trigger increased demand for protection. (Click to enlarge) The speculative net-long remains very elevated so just a small change in the fundamental or technical outlook can trigger increased demand for hedging. (Click to enlarge) This has been reflected in the options skew on WTI crude which during the past week has seen increased demand for put options. (Click to enlarge) The skew or “smile” shows that […]