Deutsche Bank Says Sell Prompt Brent Oil, Buy Later Futures

Investors should sell front-month Brent oil futures and buy later-dated contracts as the price difference between them may narrow amid speculation governments will release emergency stockpiles, Deutsche Bank AG said.

Gains in crude costs have increased speculation that emergency stockpiles including the Strategic Petroleum Reserve in the U.S. will be released to depress prices, according to a note today from Michael Lewis, an analyst at Deutsche Bank in London. The bank recommended the same investment strategy for U.S. gasoline futures as falling motor-fuel demand in the country may “send the strength in the gasoline complex to an abrupt halt,” he said.