• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 2 hours Emissions Need To Be Halved To Avoid 3C Warming
  • 6 mins Iran downs US drone. No military response . . Just Destroy their Economy Completely. Can Senator Kerry be tried for aiding enemy ?
  • 36 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 1 hour Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 5 hours Coal Boom in Asia is Real and a Long Trend
  • 52 mins Summit in Pyongyang: China's Xi Says World Hopes North Korea-U.S. Talks Can Succeed
  • 2 hours Pioneer CEO Said U.S. Oil Production would be up to 15 mm bbls/day NOW if we had the pipelines. Permian pipelines STARTING Q3
  • 11 hours Solar Panels at 26 cents per watt
  • 4 hours Huge UK Gas Discovery
  • 17 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 21 hours Trudeau approves Trans Mountain Pipeline
  • 17 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 22 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 16 hours US to become net oil exporter in November: EIA
  • 14 hours US Shale Drilling lacks regulatory body.

Breaking News:

Iran Claims It Shot Down U.S. Drone

Alt Text

Expect More Bearish News For Oil

A very bearish inventory report…

Alt Text

The Oil Price Risk Analysts Are Ignoring

While geopolitical tensions in the…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Trending Discussions

Hedge Funds Are Certain Oil Prices Will Head Higher

Money managers have amassed close to record long positions in the six-major oil-linked futures and option contracts, and the ratio of longs to shorts is even higher than when it was when hedge fund managers held a record net long position in oil back in January, suggesting that they have never been so convinced that oil prices will increase in the short term.

In the six most important petroleum contracts, money managers held long to short positions in a ratio of nearly 14:1 for the week ended on April 20, compared to a 12:1 ratio at January 23, when portfolio managers held the record net long position in oil — 1.484 billion barrels, Reuters market analyst John Kemp writes.

For the week to April 20, money managers held a net long position of 1.411 billion barrels of Brent, NYMEX and ICE WTI, U.S. gasoline, U.S. heating oil, and European gasoil, according to regulators and exchanges data compiled by Kemp.

Funds held a total of 1.520 billion barrels of bullish positions in the six contracts on April 20, while the number of short positions dropped to the lowest in at least five years—to just 109 million barrels. To compare, fund managers held 141 million barrels in bearish positions in January, when they held the record net long position.

The extremely lopsided positioning could lead to a sharp oil price correction if and when the money managers try to close some of the open long positions, according to Kemp. Related: The New Alaskan Oil Rush

Yet there are some signs supporting the view that oil prices could rise—global oil inventories are almost down to their five-year average and demand growth is still seen robust despite the higher oil prices. A number of geopolitical concerns ranging from Venezuela’s collapse to potential sanctions on Iran to possible flare-up of the conflicts in Syria and Yemen are also driving up prices.

At this point, the market participants will be looking to see if higher oil prices could start hurting demand growth, which has been strong enough to help OPEC’s mission in drawing down the global oil overhang. The other supply-demand fundamental to watch would be how much new U.S. and other non-OPEC supply comes to the market with the higher oil prices.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Ann on May 04 2018 said:
    someone just spit in the ocean,better raise oil prices because it might effect the tankers carrying oil

Leave a comment





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