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Could we really see WTI at USD 32?

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As WTI crude drops below 45 dollars a barrel and Brent isn’t far off there still seems no end in sight to this oil price collapse. Saxo’s Head of Commodity Strategy, Ole Hansen, says there’s still some way to go before it falls to the lows of 2008-2009 (WTI USD 32.50, Brent at 36.20). 

Hansen does note that hedge funds are still moving into the market. They increased their bullish bets on Brent by more that 21% last week. Exchange Traded Products (ETP) inflows were at their highest in four years.

Meanwhile the cost of hiring oil tankers has increased four-fold since September as super contango widens. VLCCs can store up to two million barrels of crude.