Saturday 9 March 2019

Oil Optimists Stay the Course Even as Demand Headwinds Loom - Bloomberg

Oil Optimists Stay the Course Even as Demand Headwinds Loom - Bloomberg:

Hedge funds keep betting on an oil rally, even with prices stuck in neutral.

Investors pushed bullish wagers on West Texas Intermediate crude prices to their highest in a month and cut short-selling bets to the lowest since October, apparently convinced that dwindling global supplies will be more than enough to withstand a weaker economy.

Futures in New York ended the week up by a mere 0.5 percent, with disappointing reports on U.S. jobs, Chinese exports and global economic growth clouding the outlook for energy demand. But money managers appear to be focusing on the impact of OPEC output cuts, a pipeline explosion in Nigeria and U.S. sanctions on Iran and Venezuela.

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