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Has brent crude risen too fast, too soon: Hansen

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Has brent crude risen too fast, too soon, asks Saxo's Ole Hansen. He notes than the commodity has fallen more than 2% this Tuesday and is down around 8% since the pre-Easter high.

Hansen says pressure is building on brent ahead of the April meeting between Open and non-Opec members. US inventories are also expected to rise, adding to the problem. 

But the main issue is the build up in speculative long positions. For each short in brent, he notes, there are ten longs, which indicate a vulnerable market.

Ole explains why he believes brent will be tested below USD 35 and why his preferred range for Q2 is USD 35-40.