Hedge funds gamble OPEC will tighten oil market too much

Hedge funds are the most bullish about oil prices in years, expecting further gains even as prices touch multi-year highs and ignoring the risk linked to such a large concentration of positions.

A record net long position has been accumulated by hedge funds and other money managers, amounting to 1,183 million barrels in the five biggest futures and options contracts covering crude, gasoline and heating oil.

Portfolio managers held a record 1,328 million barrels of long positions in Brent, WTI, U.S. gasoline and U.S. heating oil on Dec. 26, according to data published by regulators and exchanges…

 

Click Here For Remainder of Article 

Posted in: Opinion

About the Author:

Post a Comment