Oil Gloom Turns to Boom as China and Fed Allay Worst Fears - Bloomberg

Oil Gloom Turns to Boom as China and Fed Allay Worst Fears - Bloomberg:

Investors are the most optimistic on oil in two months as the worst fears that roiled markets at the end of the year start to dissipate.

Hedge funds boosted their net wagers on rising Brent crude prices by 9 percent in the week ended Jan. 15, mostly because they continued to unwind a short-selling spree from the end of 2018, data from the ICE Futures Europe exchange show.

The shift in sentiment culminated with the global benchmark closing at its highest in eight weeks on Friday after China was said to propose a ramp-up in imports from the U.S. to end a trade war between the world’s two largest economies. Signs from the U.S. Federal Reserve that it won’t rush to raise interest rates have also spurred investors to reverse bets that oil would fall while the dollar would rise.