– Over the last three weeks strong WTI spreads served as a key reminder of bullish fundamental expectations as flat price sold off sharply. This week’s collapse in prompt and deferred WTI spreads marks an important turning point in market sentiment as bullish enthusiasm and confidence in the OPEC-lead rebalance narrative fades. We’re also noticing increasingly negative data responses with last week’s extremely bullish report being met with a tepid rally while this Wednesday’s boorish data lead to rush for the exits-level two-handed spread selling. – On a more positive note we expect OPEC to continue to be able to manage downside risk in the mid/low $40s through bullish headline risk. Today’s leading item on Reuters’ commodities page read After oil drop, some OPEC delegates question if supply cut deal enough and we think the cartel has more tricks up their collective sleeve to bully speculative short positions in […]