Hedge funds are quietly laying new bets on a potential spike
in oil prices tied to the possibility of an Israeli attack on Iran, skewing the
options market to a bullish bias for the first time in six months, Reuters tell
us..
Signs that Israel is losing patience with efforts to curtail
Iran's nuclear program, as well as the intensifying conflict in Syria, are
giving funds new reason to bet on crude despite a lack of evidence that
fundamentals are improving. Activity is muted so far by the summer lull, but
could pick up in September.
The renewed premium has been most apparent in futures
markets, with benchmark ICE Brent crude gaining 10 percent over the past two
weeks. At the same time, hedge funds boosted their bullish bets in U.S. oil
markets a week ago to the highest since early May, regulatory data shows….
No comments:
Post a Comment