Despite record gluts in crude and gasoline amid resurgent US crude production, hedge funds boosted their net long position in WTI last week to a new record high.
The International Energy Agency said the group has achieved a record 90 percent initial compliance with an output accord, and as Bloomberg notes, it seems hedge funds are loving te fact that OPEC has never been more serious.
After some hesitation in the previous week, it was the fifth time this year that they’ve upped their bullish stance, and the third they took it to a new record.
In fact, as Bloomberg reports, for the first time ever, hedge funds hold more than a billion barrels of bets that crude oil prices will rally.
This post was published at Zero Hedge on Feb 20, 2017.