Oil benefits from traders’ expectation of further rises in prices
Brent edges up to $56.54 amid buying interest from speculative financial investors, but gains are capped by the prospect of faster growth in US oil production
London — Oil prices rose on Monday as investors showed record confidence in prices rising further, although gains were capped by the prospect of faster growth in US oil production. Brent crude oil rose 55c to $56.54 a barrel by 10.53am GMT, while US West Texas Intermediate (WTI) added 39c to $54.38. Money managers raised their bullish US crude futures and options positions in the week to February 21 to the highest on record, the US Commodity Futures Trading Commission (CFTC) said on Friday. "Oil prices are being supported by the ongoing buying interest shown by speculative financial investors, who for the first time expanded their net long positions in WTI to more than 400,000 contracts," Commerzbank analyst Carsten Fritsch said in a note. Speculators also raised their bets on a rally in Brent crude futures to a record high in the week to February 14, with fresh data expected to be released later on Monday. "With speculators increasing their bullish bets on US crude to an all-time h...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.