Here is a road map for this contract's price development until its expiry. As the futures
curve is in contango, the CLU2020
, which is now the new front-month contract, is yet to test the supply around the 100% up area from its YTD low. Furthermore, 50% of the YTD range is also around the area where this contract is currently trading. These factors are expected to imply an increased interest to square off long exposure aka
selling longs. So far, the price action is suggesting that there is new long interest working the orders of those selling their oil
holdings. Nonetheless, there is a decent potential to slide down to the +50% area from YTD low. Caution is advised.