Tags: oil | investors | saudis | rally | bets

Oil Investors Learn 'Don't Fight the Saudis' as Rally Bets Climb

Oil Investors Learn 'Don't Fight the Saudis' as Rally Bets Climb

Monday, 25 March 2019 10:34 AM

Hedge funds appear to have an unwavering confidence in Saudi Arabia.

They boosted bets on U.S. oil’s rally by a whopping 35 percent in the week ended March 19, the most in more than two years, as the kingdom drummed up support for supply cuts in an OPEC meeting with allies. Just two days later, West Texas Intermediate crude hit $60 a barrel for the first time since November.

“In the bond market they say don’t fight the Fed and I think in the oil market the motto is don’t fight the Saudis,” said John Kilduff, partner at Again Capital LLC, a New York hedge fund focused on energy. “Hedge funds are siding with them and banking on them to deliver on withholding supplies to the U.S. in particular, but also on a global basis.”

Hedge funds’ WTI net-long position -- the difference between bets on higher prices and wagers on a drop -- climbed to 212,317 futures and options, the highest since October, according to U.S. Commodity Futures Trading Commission data released Friday. Longs increased nearly 20 percent, while shorts slid 19 percent.

© Copyright 2019 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Markets
Hedge funds appear to have an unwavering confidence in Saudi Arabia.They boosted bets on U.S. oil's rally by a whopping 35 percent in the week ended March 19, the most in more than two years, as the kingdom drummed up support for supply cuts in an OPEC meeting with allies....
oil, investors, saudis, rally, bets
184
2019-34-25
Monday, 25 March 2019 10:34 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved