HEDGE FUNDS PLACE RECORD BETS ON OIL

The total net long positions by large speculators showed record bets on energy prices. Crude prices have risen 17% over the last month and over 100% in the last year as big money has poured into oil as the dollar has weakened and the global economy has strengthened. Unlike small speculators, who lack the firepower to move prices and have generally been on the wrong side of trades, the large speculators tend to be the market movers. This latest data shows a continued allocation into energy by large hedge funds and institutional traders.