Some U.S. fund managers finally convinced oil rally is for real | Reuters

Some U.S. fund managers finally convinced oil rally is for real | Reuters:

"U.S. fund managers are barreling into the energy sector by making broad bets on anything connected with oil, finally convinced that gains in crude prices - on track for their fourth consecutive quarterly gain, the longest such stretch for more than 10 years - are more than a mirage.

Ever since oil prices slid in late 2014 after rallying above $115 a barrel, U.S. mutual fund managers have largely stayed underweight the sector, convinced that advances in fracking technology would allow U.S. production to ramp up at any moment and keep a lid on prices.

Yet with oil futures hitting 3-1/2-year highs on Thursday, up approximately 75 percent from this time last year after top exporter Saudi Arabia and No.1 producer Russia led efforts since 2017 to cap output, some U.S. fund managers are convinced that high oil prices are finally here to stay. "



'via Blog this'