Hedge Funds Oil Trading
Hedge Funds Bullish on Oil for First Time in 5 Weeks
Hedge funds have been cutting bets that the price of oil will rise for the last five weeks. Last week, however, hedge funds once again raised bets on gains from oil after dismal trading for weeks. Analysts say this is a sign that the U.S. economy is recovering from the recession.
Net-long positions on the New York Mercantile Exchange climbed 8 percent in the week ended Sept. 7, the first increase since the seven days ended Aug. 3, according to the weekly Commitments of Traders report from the Commodity Futures Trading Commission. The price of crude advanced 2.5 percent on the Nymex last week, the most since July.
Private payrolls excluding government jobs rose by 67,000 in August after a revised 107,000 gain in July that was more than estimated, the Labor Department said in a Sept. 3 report. Pending home sales increased an unexpected 5.2 percent in July, the National Association of Realtors said on Sept 2.
“Positive housing data came out, along with lower initial jobless claims,” said Hamza Khan, an analyst at the Schork Group in Villanova, Pennsylvania. A decline in stockpiles also “bodes well for demand because it shows traders are willing to take oil out of storage and send it to refiners,” he said. Source
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