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Hansen: Crude price up but for how much longer?

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Both Brent and WTI crude are trading higher this Wednesday. That's despite the International Energy Agency estimating that OPEC is producing 2.5 million barrels a day more than is currently required. Saxo's Ole Hansen says the market has been focusing on the expected drop off in US production.

The market is also awaiting this week's US inventory report that's out later this Wednesday. Hansen notes that a couple of weeks ago there was a reduction in production while last week there was another rise.

So how best to trade crude? Ole still says his #SaxoStrats idea from earlier this week stands - to short WTI, which you can watch here. Alternatively he discusses what to do with the WTI June 2015 option.