• 4 hours French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 6 hours Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 8 hours Oil Production Cuts Taking A Toll On Russia’s Economy
  • 10 hours Aramco In Talks With Chinese Petrochemical Producers
  • 11 hours Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 12 hours Maduro Names Chavez’ Cousin As Citgo Boss
  • 19 hours Bidding Action Heats Up In UK’s Continental Shelf
  • 24 hours Keystone Pipeline Restart Still Unknown
  • 1 day UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 1 day Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 1 day Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 1 day German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 1 day Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 2 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 2 days Oil Prices Rise After API Reports Major Crude Draw
  • 2 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 2 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 2 days Statoil Looks To Lighter Oil To Boost Profitability
  • 2 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 2 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 2 days Whitefish Energy Suspends Work In Puerto Rico
  • 2 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 3 days Thanksgiving Gas Prices At 3-Year High
  • 3 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 3 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 3 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 3 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 4 days ConocoPhillips Sets Price Ceiling For New Projects
  • 6 days Shell Oil Trading Head Steps Down After 29 Years
  • 6 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 6 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 6 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 6 days Venezuela Officially In Default
  • 6 days Iran Prepares To Export LNG To Boost Trade Relations
  • 7 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 7 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 7 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 7 days Rosneft Announces Completion Of World’s Longest Well
  • 7 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
Chinese Crude Inventories Fall For First Time In 12 Months

Chinese Crude Inventories Fall For First Time In 12 Months

Chinese crude oil inventories have…

The Hidden Cost Of Electric Cars

The Hidden Cost Of Electric Cars

As countries across the globe…

Hedge Funds Shun WTI While Brent Hits 12-Week High

Permian

Brent prices reached a 12-week high on Friday, while WTI Crude prices—although surging on the latest drop in the U.S. rig count—were not touching week-highs, suppressed by rising U.S. crude output.

In a sign that investors are more optimistic on a rise in Brent prices, data show that hedge fund managers lowered their net long position on WTI by 2 percent to 274,441 futures and options in the week that ended on August 15, according to data by the U.S. Commodity Futures Trading Commission quoted by Bloomberg.

Long positions dropped by 2.2 percent, while short positions declined by 2.7 percent, according to the data.

On the other hand, ICE Futures Europe data show that the net long position on Brent doubled in the six weeks ended August 8, Bloomberg reports.

The discount at which the WTI trades to Brent reached its highest since September 2015.

What’s more, the Brent futures curve has now flipped into backwardation for the first time in years, suggesting that the oil market is tightening and going toward re-balancing.

The WTI futures curve is still in a state of contango—the opposite of backwardation.

WTI prices got a boost on Friday from the Baker Hughes report showing that the number of active oil and gas rigs in the United States fell last week by 3 rigs as drillers proceed more cautiously. Combined, the total oil and gas rig count in the U.S. now stands at 946 rigs, up 455 rigs from the same time last year.

Related: Qatar Aims To Ease Its Reliance On LNG Exports

However, despite the rig count drop, U.S. crude output continues to grow, with production averaging 9.502 million barrels per day for the week ended August 11, according to the Energy Information Administration (EIA), which now expects US production to reach an average of 9.9 million barrels per day in 2018.

Early on Monday, oil prices were steady, taking a breather from the Friday rally. At 8:50am EST, WTI Crude was at US$48.36, while Brent was at US$52.41. Just before noon, however, crude prices started to fall the rally prompted traders to take profits.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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