Hedge Funds Diesel Price
Hedge Funds Continue to Raise Bets on Rising Diesel Price
Hedge funds and other large speculators increased bullish wagers on heating oil, a proxy for diesel, by 58 percent the week ended Sept. 21, the U.S. Commodity Futures Trading Commission said in its weekly Commitments of Traders report.
“We’re seeing strong industrial production data in Western Europe,” said Hamza Khan, an analyst at the Schork Group in Villanova, Pennsylvania. “That’s a good indicator for intermodal transportation demand like trains and diesel trucks, especially in Europe given how much more dependent they are on diesel than we are in America.”
Germany, Europe’s largest economy, bolstered diesel consumption in the region as the country avoided the sovereign debt crisis that plagued nations in the euro area, including Greece and Ireland. European demand for diesel and heating oil strengthened in September as refineries halted for maintenance and German consumers stocked up before winter. Source