Oil Skeptics Exit As Market Dispels Gloom To Flirt With $50

Oil Skeptics Exit As Market Dispels Gloom To Flirt With $50

As pessimism over oil dissipates and investors flirt with $50 a barrel again, short-sellers are getting out of the way.

Hedge funds are the most upbeat about West Texas Intermediate crude in three months after bets on declining prices shrank. Meanwhile, signs that the shale boom is slowing and the market is moving closer to balance set the mood for futures to jump 8.6 per cent last week.

“People started to feel they were getting close to the bottom and it was time to close out,” Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by telephone. While there had been questions on whether the market is rebalancing, “people are starting to think that it’s real. There’s a Santa Claus and he’s going long in the oil market.”  Read More…

 

Credit By : The Economics Times

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