Tag: kemp
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 […]
Distillate export boom keeps US refiners busy: Kemp
Most distillate being exported to Mexico, Brazil and other countries in Latin America By John Kemp US refiners have become a powerhouse of distillate exports, causing the supply-demand balance for fuels from the middle of the barrel to tighten in the United States despite a very warm winter. Exports of distillate fuel oil (e.g. diesel) […]
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. […]
Brent spreads become battleground amid doubts over oil rebalancing: Kemp
Critical question is whether rebalancing will continue or driven off course by resurgence of US shale By John Kemp LONDON, March 14 (Reuters) – Global oil markets are gradually rebalancing, but progress has been slower and more uneven than the Organization of the Petroleum Exporting Countries and bullish hedge funds expected. OPEC as well as most commentators, crude […]
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 […]
US oil production forecasts revised higher: Kemp
Price differentials can be important in shale plays such as Eagle Ford which have both liquids-rich and gas-rich areas By John Kemp LONDON (Reuters) – US oil production forecasts for 2017 and 2018 have been boosted significantly as a result of rising prices as well as improved modelling techniques for predicting output down to the well level. Crude production […]
OPEC and the American shale industry seek a truce: Kemp
There is no legal way for OPEC and shale producers to cooperate to achieve their desired outcome By John Kemp LONDON (Reuters) – The Organization of the Petroleum Exporting Countries (OPEC) and shale producers have fought each other to a draw over the last two years, with neither able to achieve a decisive victory. Now both want a truce. […]
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 […]
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