Oil rally finally pulls hedge fund optimists off the sidelines
For the first time this year, a jump in bets that Brent crude prices will rise far surpassed the move by short-sellers
Oil optimists look like they’re finally ready to take the driver’s seat in crude’s rebound. For the first time this year, a jump in bets that Brent crude prices will rise far surpassed the move by short-sellers, helping set the tone for money managers’ positioning on the global benchmark. Sentiment is now the most bullish since late October. So far, the mood had hinged mostly on what short-sellers were up to. But in the week ended February 12, bullish bets rose by 10%, the most since late August, according to data released Friday. Wagers on falling prices shrank by 5.5%. “Many of the worries we’ve had about demand have dissipated,’ said Bart Melek, head commodities strategist at TD Securities in Toronto, said in an interview. “That’s convinced people to strap on some risk again.’ After surging 15% in January’s first ten days, Brent slipped into neutral for more than a month, weighed down by worries over the US-China trade war and record US production. The rally reignited this week a...
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