Tags: fund | oil | crude | futures

Funds Cut Brent Bullish Bets for First Week Since OPEC Meeting

Monday, 29 Dec 2014 09:50 AM

Hedge funds and other financial traders pared overall bullish bets on Brent crude for the first time since before OPEC’s decision to maintain production levels triggered a collapse in oil prices.

Money managers curtailed net-long positions by 15 percent to 112,886 contracts in the week ended Dec. 23, according to ICE Futures Europe exchange. They had added to net-longs in the previous four weeks, increasing them in the week to Dec. 16 to the highest level since July, even as Brent fell below $60 a barrel for the first time since 2009.

The Organization of Petroleum Exporting Countries resisted calls from members including Venezuela to reduce its production target of 30 million barrels a day when it met on Nov. 27 in Vienna. Brent crude, used in pricing more than half the world’s oil, has collapsed by 46 percent this year. The grade rose 3.1 percent in the period covered by the ICE report.

Producers, consumers and end users of crude became more bearish in the period covered by ICE’s Commitments of Traders report. They increased their net-short position, or bets on falling prices, by 5.8 percent to 337,270 contracts.

ICE publishes, usually each Monday, aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators’ positions because such transactions can reflect an expectation of a change in prices.

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Hedge funds and other financial traders pared overall bullish bets on Brent crude for the first time since before OPEC's decision to maintain production levels triggered a collapse in oil prices.
fund, oil, crude, futures
246
2014-50-29
Monday, 29 Dec 2014 09:50 AM
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