dimanche 15 mars 2015
Speculators Least Bullish on Oil Since 2013 as Stockpiles Swell
Posted on 21:36 by nice news
Speculators cut bullish oil wagers to the lowest level in more than two years amid warnings the U.S. supply glut may soon strain storage capacity.
Hedge funds and other money managers reduced their net-long position in West Texas Intermediate crude by 2.5 percent in the seven days ended March 10, U.S. Commodity Futures Trading Commission data show. Short wagers rose to a record.
Oil supplies at Cushing, Oklahoma, the delivery point for WTI and the nation’s biggest storage hub, have more than doubled in three months. Tanks nationwide are almost two-thirds full, and the International Energy Agency said March 13 that the glut raised the risk of more price slumps. Production has climbed even as companies idle drilling rigs at a record pace.
“You have a market that’s running out of storage space, and there really is no fix,” Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis, which oversees $3.4 billion, said by phone March 13. “I don’t see this getting better.”
WTI fell 4.4 percent to $48.29 a barrel on the New York Mercantile Exchange in the week covered by the report. Prices slid $2.21 to $44.84 March 13, approaching the six-year low of $44.45 reached Jan.
Hedge funds and other money managers reduced their net-long position in West Texas Intermediate crude by 2.5 percent in the seven days ended March 10, U.S. Commodity Futures Trading Commission data show. Short wagers rose to a record.
Oil supplies at Cushing, Oklahoma, the delivery point for WTI and the nation’s biggest storage hub, have more than doubled in three months. Tanks nationwide are almost two-thirds full, and the International Energy Agency said March 13 that the glut raised the risk of more price slumps. Production has climbed even as companies idle drilling rigs at a record pace.
“You have a market that’s running out of storage space, and there really is no fix,” Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis, which oversees $3.4 billion, said by phone March 13. “I don’t see this getting better.”
WTI fell 4.4 percent to $48.29 a barrel on the New York Mercantile Exchange in the week covered by the report. Prices slid $2.21 to $44.84 March 13, approaching the six-year low of $44.45 reached Jan.
Speculators Least Bullish on Oil Since 2013 as Stockpiles Swell
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