Note: This article was first published to the HFI Research subscriber. This is part of our new Oil Market Fundamental Daily Report.
Oil prices are shrinking a bit today with Brent's underperforming WTI and reducing the Brent-WTI spread. The move today seems to be speculators who dump long positions entering the OPEC + JMMC meeting. When it comes to surprises, the speculators take the precautionary principle of being on the sidelines. While it looks like the macro front, it appears that the trade war between China and the United States is increasing, leading to lower risk appetite for those who are focusing on oil prices.