Hedge funds and other money managers’ bets
on Brent crude were the most bullish since July just days before
prices rallied to a two-month high.
Money managers’ net wagers on rising prices rose 13 percent to 158,974 contracts in the week ended Feb. 10, the highest since the early days of last year’s oil slump on July 8, according to figures from the London-based ICE Futures Europe exchange.
The change was driven by a reduction in bearish positions, rather than fresh bullish bets, signaling traders remain cautious that the price recovery will endure, according to Saxo Bank A/S.
Brent futures have climbed 10 percent since the period covered by the report amid speculation that production growth in the U.S. will slow.
In response to the plunge in oil prices, which remain at about half their peak last year, drillers in the U.S. idled 33 percent of their rigs in the last 10 weeks, according to Baker Hughes Inc.
“Hedge funds managed to preempt a strong weekly
performance,” Ole Hansen, an analyst at Saxo Bank A/S in Oslo,
said by e-mail. “It was all driven by short covering, which
basically tells us that funds are still not convinced that this
is the right time to go long.”
Brent, used in pricing more than half the world’s oil, climbed as much as 1.7 percent to $62.57 a barrel in London Monday, the highest since Dec. 22. The benchmark has gained 38 percent from an almost six-year low of $45.19 a barrel on Jan. 13.
Money managers cut bearish, or short positions by 19,883 contracts to 106,768 in the week to Feb. 10, and trimmed bullish wagers by 1,492 contracts to 265,742 lots.
Money managers’ net wagers on rising prices rose 13 percent to 158,974 contracts in the week ended Feb. 10, the highest since the early days of last year’s oil slump on July 8, according to figures from the London-based ICE Futures Europe exchange.
The change was driven by a reduction in bearish positions, rather than fresh bullish bets, signaling traders remain cautious that the price recovery will endure, according to Saxo Bank A/S.
Brent futures have climbed 10 percent since the period covered by the report amid speculation that production growth in the U.S. will slow.
In response to the plunge in oil prices, which remain at about half their peak last year, drillers in the U.S. idled 33 percent of their rigs in the last 10 weeks, according to Baker Hughes Inc.
Brent, used in pricing more than half the world’s oil, climbed as much as 1.7 percent to $62.57 a barrel in London Monday, the highest since Dec. 22. The benchmark has gained 38 percent from an almost six-year low of $45.19 a barrel on Jan. 13.
Money managers cut bearish, or short positions by 19,883 contracts to 106,768 in the week to Feb. 10, and trimmed bullish wagers by 1,492 contracts to 265,742 lots.
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