WTI costs more than $50 per barrel again for first time in 2.5 months

WTI cost more than $50 per barrel again for the first time in 2½ months. Up 11%, Brent looks set to achieve its largest weekly gain since March 2009. Increased risk appetite coupled with a weaker US dollar is giving tailwind to the oil prices. 

In addition, some market observers have made optimistic remarks about the future development of the market. Russia's military intervention in support of Assad has finally turned the war in Syria into a proxy war between the world powers, which significantly increases the geopolitical risks. 

"The technical picture also encourages buying. Against this backdrop, speculative financial investors are likely to jump on the bandwagon and boost the price rise", says Commerzbank. 

The CFTC's market positioning data that are due to be published after close of trading this evening could provide some initial clarification given that they at least cover the period when the price rally began. A noticeable increase in speculative net long positions can be seen.