Robin Pagnamenta Published at 12:02AM, August 10 2015 Hedge funds have raised their bets on a rebound in oil prices for the first time in seven weeks, despite fears of a deepening global supply glut. Figures from the US Commodity Futures Trading Commission showed that asset managers had raised their net long positions in US crude futures and options during the week that ended on August 4 for the first time since mid-June. The increase in net long positions by 3,674 to 247,093 suggests a reversal in the expectations of many speculative oil traders. Only a week ago, the funds had held the smallest number of net long positions in US crude futures for nearly five years. The switch comes on the back of a rapid slide in oil prices, with the benchmark Brent contract hitting a six-month low of $48.45 a barrel on Friday, a fall of more than 26 per cent in only six weeks. Oil prices were standing at more than twice their present level only a year ago. Some analysts claim that the commission’s figures fly in the face of growing evidence that the world oil market is increasingly oversupplied, as Saudi Arabia continues to keep its spigots on full blast to drown out the competition and force higher-cost producers, especially those in the United States, to curb output. Last month, oil prices fell as production from the 12 Opec member countries hit record levels and as US shale output remained unexpectedly robust. Despite the price fall, the number of oilrigs being used in America increased by six last week to 670, according to Baker Hughes, the oil services company. It was the third week in a row that the count had increased, pointing to strong US output. Expectations of an imminent production rise in Iran when sanctions against the country are lifted, plus market turmoil in Greece and China, also have weighed on prices. Saudi and Russian foreign ministers are due to meet in Moscow tomorrow to discuss global crude prices, which are damaging the finances of many oil- exporting nations. Sergei Lavrov and Adel al-Jubeir will discuss “closer coordination” on global energy markets, the Russian foreign ministry said.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.