War? What Middle East war? According to John Kemp hedge funds and other money managers
have started to ready themselves for another big spike in oil prices in the
next few months, according to positioning data from the U.S. Commodity Futures
Trading Commission (CFTC).
By Aug. 28, hedge
funds had accumulated a net long position in WTI-linked futures and options
equivalent to 207 million barrels, up from 151 million a month earlier, the
largest net long position since May.
The rising drumbeat of war in the Middle East, coupled with heightened
chatter about more quantitative easing from the Federal Reserve and the steady
rise in prices itself has gradually drawn in more hedge funds on the bullish
side. The number of hedge funds and other money managers running long positions
of at least 350,000 barrels in the main NYMEX light sweet crude oil contract has
risen from 65 at the end of July to 82 at the end of August.
On the other side,
the number of funds running similar-sized short positions, expecting prices to
fall, has been reduced from 53 to 39…
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