With WTI prices holding at 6-month highs around $54 (and Brent at $60), Reuters’ John Kemp notes that hedge funds have never, ever been more bullishly positioned in the entire energy complex.
Hedge Funds have accumulated a record 1.189 billion bbl of long positions in the five major petroleum contracts (Brent, WTI (x2), RBOB, HO)…
This surge in buying is coming as analysts once again follow the trend and begin raising oil price forecasts.
As OilPrice.com’s Tsvetana Paraskova notes, just a few of months ago, analysts and investment banks slashed their oil price forecasts as OPEC’s production cuts drew down the global oil oversupply slower than initially expected, and rising U. S. shale production capped any short-lived oil price gains.
But at the end of the summer, as OPEC and the International Energy Agency (IEA) started reporting stronger-than expected global oil demand growth and an accelerated pace of inventory declines, the market sentiment began to change. As 2018 and the November 30 OPEC meeting draw nigh, the cartel is said to be favoring a 9-month extension of the deal through the end of next year.
This post was published at Zero Hedge on Oct 30, 2017.