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Tuesday, 10 January 2017

Oil prices steady after recent falls on weaker dollar | Reuters

Oil prices steady after recent falls on weaker dollar | Reuters:
"Oil prices stabilized on Tuesday after a sharp sell-off as a fall in the dollar triggered a bout of short-covering, but analysts said the market remained vulnerable to further falls.

Rising oil prices through December encouraged investors to buy large volumes of crude oil futures contracts and many of these "long" positions are likely to be unwound unless the market stays strong, analysts and brokers say.

"I see this as a dead cat bounce," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen. "Oil is unlikely to recover until the longs have been reduced.""

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