You can switch off notifications anytime using browser settings.

Up 40% in 2019, hedge funds say theres no stopping crude oil rally

Stock Analysis, IPO, Mutual Funds, Bonds & More

Up 40% in 2019, hedge funds say theres no stopping crude oil rally

Oil has wavered since nearing $65 in New York for the first time in five months on April 9.

Net-long positions on benchmark U.S. gasoline rose 9.6% to 115,145 contracts, the highest since late May.

Hedge funds are betting rising tensions around the globe will keep fueling oils rebound this year.

Money managers boosted optimistic wagers onWest Texas Intermediatecrude to the highest since October in the week ended April 16, according to government data released Friday. Total long and short positions swelled to the most in six months, a sign the rally is luring back investors after 2018s late-year crash. The U.S. benchmark has jumped about 40 percent this year.

Oil has wavered since nearing $65 a barrel in New York for the first time in five months on April 9. WhileOPECoutput cuts have pushed prices higher, its unclear how long the cartel and its partners will sustain the curbs. The Trump administration, meanwhile, faces a pivotal decision on Iranian sanctions, and conflicts inLibyaAlgeriaandVenezuelaremain wildcards.

You could see the balance swing a few million barrels in either direction in the next few weeks, said Leo Mariani, an analyst at KeyBanc Capital Markets. The potential for more supply outages is incredibly high, but the market is also increasingly uncertain.

The net-long WTI position — the difference between bets on higher prices and wagers on a decline — rose 10 percent to 303,366 futures and options contracts, the modity Futures Trading Commissionsaid. Long positions climbed 8.4 percent, while shorts declined 6.5 percent.

Net-length in WTI remains relatively low by historical standards, said Daniel Ghali, aTD Securitiescommodities strategist, signaling more volatility could be ahead.

Money managers have a lot of room to increase their length, he said. The short side might also increase to a lesser extent because prices are now trading above $60 a barrel, which for some people suggests that they might have overshot.

Other positions:Net-long positions on benchmark U.S. gasoline rose 9.6 percent to 115,145 contracts, the highest since late May. Net diesel positions jumped to 3,661 contracts from 882 a week earlier.

0CommentsRead more onCrude oilCommodity Futures Trading CommissionAlgeriaTD SecuritiesOpeclibyaWest Texas IntermediateVenezuelaAlso Read

Crude oil spike sends rupee and bonds tumbling

Crude oil futures shine on positive global leads

Commenting feature is disabled in your country/region.

DownloadThe Economic Times Business News Appfor the Latest News in Business, Share Market & More.

Up to 5,500% rally under BJP govt! Do you own any of these stocks?

Within 60 secs, Rs 3.2 lakh crore added to investor kitty as exit polls see NDA win

9 stocks that analysts say can give you solid returns in 2-3 weeks

Exit polls: Nifty may target fresh peak, but wild swings unlikely

D-Street experts say Mondays rally just the beginning if exit poll results hold true

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights:Times Syndication Service

Up 40% in 2019, hedge funds say theres no stopping crude oil rally

Gold prices steady, buoyed by worries over Sino-US trade tensions

Cotton likely to remain range-bound till June-end

Jewellers, traders stock gold ahead of election results

Oil prices fall on surging US crude stockpiles, economic concerns

Chana, barley, wheat firm up on rising govt buys

Mentha oil futures inch up on improved spot demand

Gold Rate Today: Gold lacklustre on rise in equities, low spot demand

Commodity outlook: How oil, gold, agri commodities may trade in Wednesdays session

New import rules on rough diamonds leave traders in a tizzy

Choose your reason below and click on the Report button. This will alert our moderators to take action