RE: Looks like there is a huge buyer out there14 Apr 2023 07:44
OPEC+ Cuts Sent Bullish Bets On Brent Soaring
By Tsvetana Paraskova
Apr 12, 2023, 7:35 AM CDT
Money managers boosted their net bullish bets on Brent Crude by the second-largest amount on record following the surprise announcement from major OPEC+ producers that they would remove more than 1 million barrels per day (bpd) from the market between May and December.
Speculators and traders added as many as 73,000 contracts to the net long position - the difference between bullish and bearish bets - in Brent Crude, the second-highest increase in such bets, per data from ICE Futures Europe cited by Bloomberg.
The biggest-ever jump in net long positions back in 2016 took place after a similar move from OPEC when the cartel announced cuts and the creation of the OPEC+ alliance with Russia and other non-OPEC producers.
The increase in the net long positions in both Brent and the U.S. benchmark WTI was driven not only by fresh longs but also by short covering. Traders were wrong-footed by the latest surprise cuts from OPEC+, which had spent weeks reassuring the markets that the plunge in oil prices, the banking sector turmoil, and the intensified fears of a recession were not reasons to amend the production cuts agreement.
https://oilprice.com/Latest-Energy-News/World-News/OPEC-Cuts-Send-Bullish-Bets-On-Brent-Soaring.html