Hedge funds wager on scarcity of Brent oil: Kemp
By John Kemp
LONDON, Sept 24 (Reuters) – Hedge fund managers made solely minor changes to their total place in petroleum futures and choices within the newest week however continued their rotation out of West Texas Intermediate into Brent.
Hedge funds and different cash managers raised their mixed internet lengthy place within the six most necessary petroleum contracts by simply three million barrels to 1.049 billion barrels.
Fund managers boosted their internet place in Brent (+28 million barrels) and U.S. gasoline (+Four million) however reduce positions in U.S. heating oil (-Four million), European gasoil (-9 million) and WTI (-16 million barrels).
Diverging attitudes in the direction of Brent and WTI have develop into probably the most notable short-term pattern amongst hedge funds (https://tmsnrt.rs/2xBIs4T).
Portfolio managers have boosted their internet place in Brent by 143 million barrels within the final 4 weeks, a rise of 44 %, together with by 51 million barrels within the two most up-to-date weeks.
On the identical time, fund managers have trimmed their internet place in NYMEX and ICE WTI by 44 million barrels within the final fortnight.
Hedge funds maintain practically 16 bullish lengthy positions in Brent for each bearish brief one, up from a ratio of 6:1 on the finish of Could, and much forward of the ratio of 9:1 in WTI.
Fund managers are betting the introduction of sanctions on Iran will end in a scarcity of seaborne crude on worldwide markets even whereas the landlocked U.S. inland market stays plentifully equipped.
– Hedge funds keep bullish on Brent whereas trimming WTI (Reuters, Sept. 17)
– Merchants wager Iran sanctions will depart market in need of crude (Reuters, Sept. 11)
– Hedge funds flip bullish once more on oil (Reuters, Sept. 10) (Enhancing by Dale Hudson)
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