According to JPMorgan Chase & Company, oil investors should consider selling existing bullish positions because prices may decline this week without fresh political tension in North Africa and the Middle East.

New York crude futures surged to the highest since October 2008 on January 31 with London’s Brent trading above USD 100 per barrel on concern Egyptian unrest would disrupt supplies from the Middle East and unsettle the region’s stability. Signs that protests are easing mean the market may be set for a notable correction.

According to the US Commodity Futures Trading Commission, hedge funds raised bullish bets on oil by the most in 8 weeks.

JPMorgan analysts led by New York based Lawrence Eagles said that this week will be characterized by a drift down in crude prices on days where either no new tensions arise or where political progress is perceived. Investors should therefore consider taking profits on all or a portion of their remaining long positions.

(Sourced from Bloomberg)