.
The ZLT ended up 2.4% on the week last week as the slide in WTI halted while Brent and WTI shorts went into rare high territory. Note the CFTC WTI physical net long position was, as of the Tuesday dated report, down to 2.4x. This is extremely rare and points to extreme fear. We suspect short covering ensured on Wednesday and we'll know by next Friday. We do not see the extreme bearishness that's come to light in September as warranted.
Look for a Seeking Alpha piece from us this week.
Holdings Watch:
- We added one large trade only upstream position last week.
- The blotter is updated here.
Other Items:
- After weeks of sideways action oil directed drilling saw a bump in Friday's data. We don't expect a meaningful recovery near term.
- The 10 frac spread pop shown last Friday is harder to explain and is likely data or definitional in nature.
Have a good weekend,
Z
We are looking for a bigger build this week.
Early Consensus: +53 Bcf
Last week: +40 Bcf
Last year: +62 Bcf
5 year average: +80 Bcf