& Tobago

Very usefull links


News links




Dow Jones

Oil price



Views and News




Oil bears sent back into hibernation by economic optimism, OPEC, Venezuela: Kemp




By John Kemp / Reuters

Petroleumworld 02 05 2019

Hedge funds are becoming steadily less bearish towards oil as OPEC output cuts and U.S. sanctions on Venezuela remove large volumes of crude from the market amid increasing confidence a global recession can be averted.

Hedge funds and other money managers were net buyers of another 30 million barrels of Brent crude futures and options in the week to Jan. 29, according to position data from ICE Futures Europe.

Fund managers have been net buyers in seven of the last eight weeks and have increased their position by 96 million barrels since Dec. 4 ( tmsnrt.rs/2Bfloe4 ).

In common with previous weeks, fund managers mostly closed out old bearish short positions (-18 million barrels) rather than opening new bullish long ones (+12 million).

Bearish short positions have fallen by more than 60 percent from a peak of 122 million barrels on Dec. 11 to 48 million as fund managers have become convinced that the fourth-quarter sell-off is over.

In contrast, bullish long positions have risen by just 27 million barrels over the same period, as portfolio managers remain cautious. However, weekly increases have started to accelerate, in a sign of growing confidence.

Funds now hold almost 6 bullish long positions for every bearish short one, up from a ratio of 2:1 in mid-December, and the most bullish overall position since mid-October.

OPEC's early and aggressive output reductions have removed some of the downside supply risk to oil prices even as traders remain uncertain about the risk of recession and the potential hit to consumption growth in 2019.

U.S. sanctions on Venezuela's national oil company PDVSA, since broadened to include third-country purchasers of Venezuela's heavy crude, are also likely to reduce global oil supplies.

Besides crude, fund managers were buyers of 7 million barrels of European gasoil futures and options in the week to Jan. 29, according to exchange data.

Net long positions in gasoil have risen in each of the last four weeks and now stand at 22 million barrels, up from just 2 million barrels at the end of 2018.

Gasoil is the part of the barrel most closely geared to the business cycle, so cautious buying suggests fund managers see a reduced probability of recession this year.


We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.


John Kemp from Reuters.

reuters.com 02 05 2019


Hit your target - Advertise with us

PW 300.000 plus request per week

Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.


Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1



Contact: editor@petroleumworld.com,

Editor & Publisher: Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld   / Elio Ohep - All rights reserved



This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.