Wednesday 17 January 2018

Oil-betting funds are having their cake and eating it

Oil-betting funds are having their cake and eating it:

"We are taught from a young age that it is possible to have too much of a good thing. Too many sweets will make you sick, staying up too late will leave you overtired and, as we get older, most eventually learn it is better to exit a party when you are still having fun.

But for hedge funds operating in the oil market — who have established a record bet on rising prices —Brent’s rally to $70 a barrel is not yet the signal to trigger a self-imposed curfew.

As prices hit levels not seen since the oil crash started in late 2014, a growing band of traders expect money managers from Mayfair to Connecticut to double-down on crude, despite warnings that the speculative overhang could trigger a sell-off if enough decide to cash in their profits."



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