Tag: hedge funds
Hedge funds anticipate hurricane disruption to U.S. refineries: Kemp
Backwardation in gasoline narrowing as tankers head from Europe to bring relief fuel By John Kemp Hedge funds turned bearish towards U.S. crude while boosting bullish positions in gasoline and heating oil in the final week of Aug., anticipating major disruption to U.S. refineries as a result of Hurricane Harvey. Hedge fund operators responded in […]
Hedge funds turn bearish on oil and refined fuels: Kemp
Overall, hedge fund positioning in oil now appears neutral By John Kemp LONDON, May 8 (Reuters) – Hedge funds and other money managers were turning increasingly bearish towards oil even before prices plunged on Thursday. Hedge funds cut their net long position in the three main futures and options contracts linked to Brent and WTI […]
Oil prices falter as hedge funds stop buying: Kemp
With few short positions left to be covered, rally in Brent, WTI prices ran out of steam By John Kemp Hedge funds have tempered their bullishness towards crude oil as the short-covering rally that gripped the market since the end of March ran its course. Hedge funds and other money managers increased their net long […]
Hedge fund confidence in OPEC starts to fray: Kemp
OPEC’s credibility is on the line: stocks need to show significant draw during 2nd and 3rd quarters By John Kemp LONDON, April 20 (Reuters) – OPEC and some of the most important hedge funds active in commodities reached an understanding on oil market rebalancing during informal briefings held in the second half of 2016. OPEC committed to […]
Surge in oil hedging could worsen US supply glut
$55USD/b for 2018 needed to “organically fund” significant tight-oil production growth Those hoping that recent oil-price weakness will prompt US producers to pull back drilling activity and ease the glut of oil supply may need to keep waiting. Wood Mackenzie’s latest analysis of oil and gas hedging activity shows a recent surge in oil hedges. “Recent […]
Hedge funds unwind record bullish position in oil, pressure prices
Enormous concentration of hedge fund positions that presaged sharp drop in oil prices seems to have dissipated By John Kemp LONDON (Reuters) – Hedge funds have unwound much of the concentration of bullish positions that contributed to a fall in oil prices this month, suggesting a broader range of views about where prices go next. […]
Oil prices drop as hedge funds head for the exit: Kemp
Exit by small number of traders turned into a rush on March 8 By John Kemp LONDON (Reuters) – Hedge funds and other money managers had barely started liquidating their record bullish position in crude oil futures and options before prices tumbled on March 8. The critical question is how much more of the position will need to […]
Hedge funds find plenty of willing sellers in oil: Kemp
Critical question is whether liquidity will remain high in the months ahead or evaporate By John Kemp (Reuters) – For every buyer of futures and options there must be a seller. For every long position there must be a corresponding short position. Hedge funds and other money managers have purchased a record number of futures and options contracts linked […]
Oil prices stable, but futures and crack spreads are volatile: Kemp
Speculative traders increasingly focusing on spreads, likely explains some sharp price moves By John Kemp “Volatility can be neither created nor destroyed, rather it transforms from one form into another,” is a pretty fair summary of how the oil market works (with apologies to physicists). The benchmark price of Brent crude has been unusually stable since the middle of […]
US gasoline stocks rising much faster than usual: Kemp
Hedge funds established largest bullish position in gasoline futures and options since July 2014 By John Kemp LONDON (Reuters) – U.S. gasoline stocks are rising much faster than normal at the start of the year, threatening to leave refiners struggling to clear an overhang of motor fuel later in the year. Gasoline stockpiles rose by […]
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