Thursday, November 1, 2012

Hedges slash bullish oil bets to 3-month low




Mark Shenk, Bloomberg News  reports that hedge funds reduced bullish oil bets to the lowest level in almost three months as futures declined and U.S. crude stockpiles increased.

Money managers slashed wagers on rising prices for the fourth time in five weeks, cutting net-long positions by 17 percent in the seven days ended Oct. 23, the Commodity Futures Trading Commission’s Commitments of Traders report on Oct. 26 showed. It was the least since the week ended July 31.

Oil has fallen 15% from a four-month intraday high of $100.42 a barrel on Sept. 14. Futures dropped to a three-month low of $84.94 last week as crude inventories swelled and fuel demand shrank. U.S. output has increased to the highest since 1995 as new technology unlocked supply in formations such as the Bakken shale in North Dakota.,,,.

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