According to a research note by Daniel Hynes, an analyst at ANZ
The note cites upcoming soft patch in demand for oil and extreme investor positioning as reasons for possible short-term price weakness.
Though he says that "this will not open the gates to a full-blown sell-off", further adding that unplanned disruptions would provide further support for oil once it falls back to the mid-$60s level.
Meanwhile, he says that WTI is vulnerable to a correction as long positions are at a record (something which I highlighted here as well) and that could prompt a pick-up in US shale drilling.
Brent and WTI are not doing too well on the day, both down almost 1% after a sudden drop in Asian trading here.
