#SaxoStrats: No fireworks above $50 as correction looms
- Both WTI and Brent oil made it above $50 yesterday without triggering additional buying.
- Ascending wedges seen on both Brent and WTI. They often resolve in very steep selloffs .
- Hedge funds held a combined and near record 650 million barrels last week.
- The forward curve is flattening with hedgers selling into the back months .
- US refinery margins (RBOB-WTI spread) are at their weakest in 6 years for this time of year
WTI continuous 5-year chart:
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