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Monday, 9 January 2017

Oil in retreat towards $55 as bullish bets stall

Oil in retreat towards $55 as bullish bets stall:
"Oil prices slid towards $55 a barrel on Monday as fears mounted that funds betting on a price rally have started to pare back positions, with traders waiting for more evidence that Opec supply cuts will be substantial enough to balance the market.

By the end of December hedge funds had amassed the biggest ever bet across international marker Brent and US benchmark West Texas Intermediate that prices would continue to rise, contributing to a 30 per cent rally in the last two months of 2016.

However, the latest exchange and regulatory data indicates the momentum generated by funds has stalled, with some starting to add short positions that would benefit if prices reversed while the accumulation of longs has slowed."

'via Blog this'