01 May 2016
Posted in
sentix Weekly
Optimism on Crude not matched by investors’ strategic bias
The latest sentix survey indicates that investor optimism on Gold and Crude Oil has continued to grow as commodity prices have headed higher over the past month, helped by US dollar weakness and more encouraging signs on China and the global macro outlook. In the case of Crude, Brent looks on track to re-test $50 as we move into May, supported by a rising tide of near-term optimism. However, survey readings based on investors’ medium-term strategic bias on Crude have ticked lower in the past week and remain well down on their 2016 highs. While investors are upbeat on the near-term outlook for Oil, they are much less positive on its mediumterm prospects (see Charts 3-4, P2).