Oil Sentiment Beginning to Sour

After a more than 60% rally from the early February low investors are beginning to turn skeptical on crude oil again:

 

Barclays Research highlighting the large turnaround in managed money positioning…

Barclays_Oil

 

Macquarie Research takes the opportunity to make a Trump joke while highlighting the short term risks to oil prices…

 

Macquarie_Oil

For our part we have been sounding the cautionary alarm on crude for nearly two weeks. A correction to the ~$36 area seems quite healthy, however, we will have to see if there is any upside follow through after Thursday’s bullish ‘hammer’ candlestick:

 

WTI Crude Oil (Daily)

WTI