Hedge funds slash oil longs to 2008 lows as sanction danger eases, provide fears develop
Hedge funds minimize their bullish bets on crude oil to the bottom degree in practically 17 years, because the fading danger of recent sanctions on Russian crude shifted focus again to oversupply considerations.
CFTC knowledge, reported by way of Bloomberg (gated) confirmed cash managers’ net-long place in West Texas Intermediate futures fell by 19,578 heaps to only 29,686 within the week to Tuesday — the smallest since October 2008.
With geopolitical tensions easing and a number of other businesses forecasting oil provide to outstrip demand later this 12 months, sentiment turned bearish. The U.S. push for talks to finish the warfare in Ukraine additional decreased expectations of latest sanctions on Russian crude, regardless of little actual progress towards peace.
This text was written by Aaron Cutchburt at investinglive.com.
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