Oil price heads for top of recent range as Opec’s cuts tighten supply
London — Oil rose on Tuesday after exchange data showed hedge funds placing record bets on North Sea and US crude as Opec production cuts tightened supply. Benchmark Brent futures were up 50c at $56.58 a barrel by 9.30am GMT. US light crude was up 50c at $53.90, having risen by about 0.5% in a shortened session on Monday because of a US national holiday. Money managers now hold the highest volume of net long Brent futures and options on record, InterContinental Exchange data showed on Monday, betting on higher prices to come as Opec and other key exporters reduce production. Net long US crude futures and options positions are also at a record high, US data showed on Friday. Members of Opec and producers outside the group agreed in November to cut output by about 1.8-million barrels per day (bpd) in an effort to drain a global glut that has depressed prices for more than two years. So far, Opec appears to be sticking to the deal. Production has been falling and speculative investors ...
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