Column: Oil bulls return as the threat from Omicron recedes: Kemp | Reuters

Column: Oil bulls return as the threat from Omicron recedes: Kemp | Reuters

Portfolio investors have started to rebuild bullish positions in the oil market, reassessing earlier fears about the likely impact of the Omicron variant of coronavirus on major economies and passenger aviation in 2022.

Hedge funds and other money managers purchased the equivalent of 54 million barrels in the six most important petroleum futures and options contracts in the week to Dec. 28 (https://tmsnrt.rs/3JE0yqq).

Funds have purchased a total of 70 million barrels over the two most recent weeks, after selling 327 million over the previous 10 weeks, according to records published by regulators and exchanges.

Last week's buying was the fastest since August, and among the most rapid rates for more than a year, signalling a sharp turnaround from previously bearish investor sentiment.