• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 5 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 1 day U.S. Treasury Secretary Mnuchin Weighs Lifting Tariffs On China
  • 15 hours Socialists want to exorcise the O&G demon by 2030
  • 2 hours Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 11 hours Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 17 hours Chevron to Boost Spend on Quick-Return Projects
  • 58 mins Maritime Act of 2020 and pending carbon tax effects
  • 1 day UK, Stay in EU, Says Tusk
  • 16 hours Conspiracy - Theory versus Reality
  • 1 day What will Saudi Arabia say? Booming Qatar-Turkey Trade To Hit $2 bn For 2018
  • 1 day German Carmakers Warning: Hard Brexit Would Be "Fatal"
  • 24 hours Regular Gas dropped to $2.21 per gallon today
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Hedge Funds Turn Bullish Amid Minor Correction

trading

U.S. West Texas Intermediate crude oil futures posted a volatile two-sided trade this week before turning decisively lower for the week. Volume was light at the start of the week due to a U.S. bank holiday, but that didn’t stop prices from edging lower on Monday.

Rising Supply Worries

The early trade was influenced by concerns over rising supply from OPEC and the United States. However, losses were limited by worries over falling Iranian output as we inched closer to the start of U.S. sanctions in November.

According to a week-end report, output from OPEC rose by 220,000 barrels per day (bpd) between July and August, to a 2018-high of 32.79 million bpd. The rise in output was fueled by a recovery in Libyan production and strong Iraqi exports.

Additionally, traders were saying that rising U.S. production could become an issue after Baker Hughes reported on August 31 that U.S. drillers added oil rigs for the first time in three weeks. The rig count increased by 2 units to 862. Furthermore, in August, the U.S. Energy Information Administration reported that U.S. crude oil production hit a record 11 million bpd.

Hedge Funds Increase Bullish Bets

Other supportive news was government data released on August 31 that said hedge funds are betting that the markets will be supported by the notion that U.S. sanctions on Iranian crude oil exports will eventually lead to constricted markets.

Hurricane Spike

Prices spiked higher on Tuesday…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News