Oil Bulls Lose Faith in Recovery as Russia Adds to Global Glut
Mark Shenk
October 2, 2015 — 7:44 PM EDT
Saudi Aramco Cuts Crude Pricing to Asia, U.S. Amid Weak Demand
Russia boosts output to post-Soviet high in September
Hedge funds cut net-long positions for first time in 6 weeks
Hedge funds trimmed bullish oil bets for the first time in six weeks, losing faith in a swift recovery as Russia boosted output to the highest since the Soviet Union collapsed.
Speculators reduced their net-long position in West Texas Intermediate crude by 9.1 percent in the week ended Sept. 29, according to data from the Commodity Futures Trading Commission. Longs dropped from a 12-week high while shorts increased.
U.S. crude output is down 514,000 barrels a day from a four-decade high reached in June, Energy Information Administration data show. The number of rigs targeting oil in the U.S. dropped to a five year low, Baker Hughes Inc. said Oct. 2. WTI traded in the tightest range since June last month as China’s slowing economy and the highest Russian output in two decades signaled the global glut will linger.
"The U.S. producers are the only ones doing their part to reduce the global glut," John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by phone.
"Other countries, such as Russia, are pumping at full tilt. The cutbacks by shale producers here aren’t going to have much impact, especially given the slowing global economy."
WTI decreased 1.3 percent in the report week to $45.23 a barrel on the New York Mercantile Exchange. It settled at $45.54 Friday.
more:
http://www.bloomberg.com/news/articles/2015-10-02/oil-bulls-lose-faith-in-recovery-as-russia-adds-to-global-glut
DO SOMETHING!
| 