Friday, July 8, 2016
In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.
Let’s take a look.
1. Speculators raise bets on oil ETFs
- The United States Oil Fund, an ETF that tracts WTI prices, saw $59.9 million of capital flow into the fund in June. That is the first positive inflow since February.
- In the previous three months, Bloomberg reports, the ETF saw outflows of $1.46 billion as investors ran away from long bets on crude oil.
- But it is not all up from here. On the NYMEX+ICE, hedge funds cut their net long positions by 37 million barrels to 179 million barrels in the last week of June. Short bets also rose by 24 million barrels.
- The recent sell off came after the Brexit vote, as concerns about global financial markets spread. However, fears over the potential for the Brexit to infect wider financial stability appear to be abating.
2. U.S. has largest oil reserves in the world
- A new analysis from Oslo-based Rystad Energy finds that the U.S. holds the world’s largest oil reserves, more than Russia, Saudi Arabia, or Venezuela.
- Venezuela is typically thought of as having the world’s largest oil reserves at 298 billion barrels, but Rystad believes that much of that is undiscovered oil.