U.S. Crude Prices Rise

Hedge Funds Interested in U.S. Crude Prices Rise

U.S. crude prices rise has sparked interests in hedge funds and other speculators, a sign of Wall Street confidence that the oil selloff that began 10 months ago may be nearing its end.
Data from the U.S. Commodity Futures Trading Commission (CFTC) on Friday showed the net long position in U.S. West Texas Intermediate (WTI) crude held by money managers rose by 40,994 contracts to 276,051 in the week ended April 21.
Reuters charts of CFTC data show that is the highest level in nine months for net longs, or positive wagers, on WTI held by such money managers, who include hedge fund operators and speculators.
"This data is consistent with the price rally we've been seeing in oil," said John Kilduff, partner at New York-based energy hedge fund Again Capital. "Oil is back in favor and lots of folks are anxious to get in to what they see as a bottom to the market."
After worries about a global glut drove oil markets down 50 percent from last June, crude prices seem to have found their footing in recent weeks.
WTI's front-month contract surged from a six-year low of $42.03 a barrel in March to a 2015 high of $58.41 this week. It gained 27 percent over the past six weeks, rising about 20 percent in April alone.
Source: Reuters

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