Hedge Funds Bet on Higher Oil Prices as Supply Cuts Boost Crude Markets

Hedge funds are rushing back into the oil market with their most bullish wagers in more than a year after cuts by Saudi Arabia and Russia sent crude surging.
Gasoline and jet fuel demand have outperformed expectations while industrial demand has been weaker than expected.
Production costs for U.S. shale oil have started to decline after years of inflation, boosting potential profits.
India's oil demand growth has slowed considerably compared to 2021 though remains at record highs.
Analysts see inventory tightness remaining the key price driver though macro concerns could periodically weigh on prices.

oilprice.com

Relevant topic timeline:

8/21/2023

Energy Sector: Monetary Easing Will Probably Follow Soon And Lift The Oil Prices (XLE)

China's slowing economy and worsening macroeconomic indicators may be good news for oil prices, as it could lead to changes in monetary policies and stimulate global demand for oil. Investing in oil ETFs, particularly the Energy Select SPDR Fund (XLE), which includes stable and profitable companies, may be a reliable option. There are risks involved, but with tight oil supply and central banks' desire to avoid an economic downturn, oil assets could still be favorable.

8/25/2023

The stock market will continue higher until these 2 things happen, Bank of America says

Bank of America believes that the stock market will continue to rise as investors' bullish sentiment contradicts their conservative portfolio positioning, suggesting there is still upside potential until hedge funds increase their exposure to cyclical and high-beta stocks and economic conditions deteriorate considerably.

8/30/2023

Hedge funds have made a huge push into risky assets. Here's what that means.

Stocks bounce back after weak job opening data, but achieving positive returns for the month remains uncertain due to market uncertainties and unanswered questions about the strength of the consumer and investor behavior. Hedge funds are increasingly taking on risk, but are still below exuberance levels, according to Société Générale.

8/30/2023

Treasury market sees growing divergence between investors and their positions

Hedge funds are increasing their short positions in the Treasury market, while asset managers are going long, reflecting different views on the U.S. economic outlook and causing volatility in the 10-year Treasury yield.

9/27/2023

Oil Traders Bet Big on Higher Prices, but Correction May Loom as Demand Faces Headwinds

Oil traders have been heavily buying crude and fuel futures over the past four weeks, leading to a ratio of bullish to bearish bets on oil and fuels of almost 8:1, indicating that oil prices may be due for a correction.

9/28/2023

Oil Prices Spike as Inflation Worries Mount, Though Economic Data Offers Some Positives

A spike in crude oil prices to the highest level of the year adds to the challenges faced by world markets, leaving investors turning to the Federal Reserve chair for reassurance amidst concerns over inflation, a potential government shutdown, unresolved autoworker strikes, and the Chinese property sector bust.

10/9/2023

Hedge Funds Dumped Commodities Stocks Before Oil Price Spike

Hedge fund managers were selling U.S. stocks sensitive to commodities at an accelerated pace just before a surge in oil prices, following a major military assault on Israel, threatened global demand and impacted U.S. efforts to broker a deal between Saudi Arabia and Israel.

Topics

Posted 9/11/2023, 11:00:00 PM

Hedge Funds Bet on Higher Oil Prices as Supply Cuts Boost Crude Markets

Hedge funds are rushing back into the oil market with their most bullish wagers in more than a year after cuts by Saudi Arabia and Russia sent crude surging.
Gasoline and jet fuel demand have outperformed expectations while industrial demand has been weaker than expected.
Production costs for U.S. shale oil have started to decline after years of inflation, boosting potential profits.
India's oil demand growth has slowed considerably compared to 2021 though remains at record highs.
Analysts see inventory tightness remaining the key price driver though macro concerns could periodically weigh on prices.

oilprice.com

Relevant topic timeline:

8/21/2023

Energy Sector: Monetary Easing Will Probably Follow Soon And Lift The Oil Prices (XLE)

8/25/2023

The stock market will continue higher until these 2 things happen, Bank of America says

8/30/2023

Hedge funds have made a huge push into risky assets. Here's what that means.

8/30/2023

Treasury market sees growing divergence between investors and their positions

9/27/2023

Oil Traders Bet Big on Higher Prices, but Correction May Loom as Demand Faces Headwinds

9/28/2023

Oil Prices Spike as Inflation Worries Mount, Though Economic Data Offers Some Positives

10/9/2023

Hedge Funds Dumped Commodities Stocks Before Oil Price Spike