Investors are betting big that Organization of Petroleum Exporting Countries’s (Opec’s) cuts are real.
Money managers are the most bullish ever on West Texas Intermediate (WTI) crude for a second week as signs show Opec and other nations are slashing production. The group cut supply by 840,000 barrels a day last month, according to a Bloomberg survey, and Russia, the largest of the non-members taking part in the deal, reduced output by 117,000 barrels a day. WTI has traded above $50 a barrel for the past seven weeks, encouraging Wall Street investors to fund more drilling in US shale fields.
“The smart money is starting to realize that the Opec production cuts are real,” Phil Flynn, senior market analyst at Price Futures Group in Chicago, said by telephone on Friday. “The oil story is beginning to look like the bust-end of the cycle is over.” Read More…
Credit By : Livemint
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