Hedge funds turn from Opec friend to adversary in oil market:
"Opec set out to woo some of the biggest oil hedge funds in the industry at the turn of the year, holding private meetings where it laid out plans to cut crude supplies in an attempt to get prices back towards $60 a barrel. It was a dramatic change of tack from an oil cartel that had for years slammed funds as “speculators”, which it accused of turning the world’s most important commodity into a casino. But it was also a recognition that trades placed in Mayfair or Connecticut sometimes wield almost as much influence as the number of supertankers ploughing the sea lanes. Six months on the relationship lies in tatters, with traders rapidly losing faith in Opec’s efforts to end a three-year old oil glut. Brent crude, rather than rallying, has had its worst first half to a year in two decades, dropping by a fifth since January to $45 a barrel."
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