The oil bears are back, and they’re looking at OPEC before making their next move. While money managers slashed bets on rising West Texas Intermediate crude prices for a ninth week in their longest retreat on record, short-selling jumped to the highest in more than a year. The rapid shift in sentiment sets the stage for an OPEC meeting on Sunday to discuss market conditions.
“It’s been a position where no one obviously wants to be long,” said Brian Kessens, who helps manage $16 billion in energy assets at Tortoise in Leawood, Kansas. “What OPEC needs to do is certainly come off the produce-as-much-as-you-can mode. OPEC’s the most important factor in the near-term.”
Investors will be waiting to see whether OPEC provides any indication that the group will trim production once again next year as futures plunge. A change in policy would follow President Donald Trump’s calls on the cartel to lower oil prices and ramp up output to make up for lost crude from Iran due to U.S.-imposed sanctions. Read More