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Hansen: Why the market is split over where crude is headed next

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The oil market is disappointed but also in doubt, says Saxo's Ole Hansen. Both short and long positions are up in the futures markets and ETPs. He points out that the disappointment has come from the lack of follow-up on last week's verbal intervention from Russia and, to a certain extent, OPEC. The market, he says, has retraced half of last week's gains.

Fundamentals are still negative, Hansen believes, and the risk is that the market will test below USD 30 and could head towards USD 25.

Meanwhile oil producers are struggling with BP losing around 10% of its share price this Tuesday while Shell has been downgraded.