Monday, 16 December 2019

RPT-COLUMN-Bullish oil bets surge after OPEC+ reaches deal on cuts: Kemp - Reuters

RPT-COLUMN-Bullish oil bets surge after OPEC+ reaches deal on cuts: Kemp - Reuters:

Hedge fund managers piled back into petroleum last week after Saudi Arabia and its allies in the OPEC+ group of major oil exporters announced deeper-than-expected cuts to their production in the first quarter of 2020.

Hedge funds and other money managers bought futures and options equivalent to 154 million barrels in the six most important contracts linked to petroleum prices in the week to Dec. 10.

Purchases were the largest in any one week for more than two years, according to position records published by ICE Futures Europe and the U.S. Commodity Futures Trading Commission on Friday.

In recent weeks, portfolio managers have struggled to form a consistent view about production and consumption next year, amid conflicting signals about the intentions of OPEC+ and prospects for a U.S.-China trade deal.

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