(The opinions expressed listed below are these of the creator, a columnist for Reuters.)
* Chartbook: tmsnrt.rs/3bL7K4X
LONDON, March 15 (Reuters) – Hedge funds have been small patrons of petroleum in the newest week, reversing small gross sales within the two earlier weeks, because the outlook for costs turns into extra unsure after a robust four-month rally.
Hedge funds and different cash managers bought the equal of 16 million barrels within the six most essential petroleum futures and choices contracts within the week ending on March 9.
Final week’s purchases reversed gross sales of 20 million barrels over the 2 earlier weeks, however comply with on from purchases of 548 million barrels within the 15 weeks between Nov. 3 and Feb. 16 (tmsnrt.rs/3bL7K4X).
In the newest week, portfolio managers have been small patrons of NYMEX and ICE WTI (+9 million barrels), U.S. gasoline (+6 million). U.S. diesel (+3 million) and European gasoil (+4 million) however offered Brent (-5 million).
Funds now have a mixed place of 901 million barrels, which is within the 82nd percentile for all weeks since 2013, and a stage that has solely been exceeded in 4 weeks within the final two years.
Bullish lengthy positions outnumber bearish brief ones by a ratio of 5.75:1, within the 78th percentile, indicating positioning is already considerably lopsided and rising the likelihood of a short-term reversal.
Positions in crude (83rd percentile) are extra stretched than in fuels (73rd percentile), which confirms that persistent OPEC+ output restrictions somewhat than recovering consumption is the principle underpinning for bullish views.
– Hedge fund positioning shifts in expectation of oil value peak (Reuters, March 8)
– Hedge funds promote oil as bull run stutters (Reuters, March 1)
– Fund shopping for in oil stalls after costs high $60 (Reuters, Feb. 22)
– Oil market rebalancing largely full, aside from jet gasoline (Reuters, Feb. 19) (Enhancing by Jane Merriman)
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