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Page added on May 6, 2015
Hedge funds are in love with crude oil
Hedge funds love crude oil.
Oil prices are recovering from the crash, and hedge funds have made big bets that oil prices will keep rallying.
According to a report from Societe Generale, hedge funds are most bullish on crude oil among major commodities, or betting that the price of oil will rise.
Overall, hedge funds are still negative on commodity prices.
On Tuesday, West Texas Intermediate crude oil climbed above $60 per barrel to a make a new year-to-date high and cracking $60 for the first time since December.
Brent crude also reached its highs for the year.
On Wednesday, WTI was up another 2% to nearly $62 a barrel.
The data is based on non-commercial positions reported to the CFTC, and is updated as of April 28.
2 Comments on "Hedge funds are in love with crude oil"
joe on Thu, 7th May 2015 9:45 am
They have no choice but to buy. The debts are built up so high they are trying to rally oil to a technical number, then the system will auto buy it. Then they will dump it if it got to around 100 dollars. We have to remember they hedged 6th 1 yr 3rd etc at certain values so they will try to make commodities that value before they can cash in. Clearly they didn’t hedge at 60-70, probably 90 to 100, nobody expected a crash, they would have hoped Opec would cut, then they would pump it to 120 then dump it, with low supply the risk was nothing. Saudi is eating their lunches.
Dredd on Thu, 7th May 2015 1:02 pm
They have always been kinky there in the hedges.