Major funds and other cash managers have begun to decline the hardwillings from global collapse and its; The growing decline in oil demand has led to market participants to spend most of the quarter quarter last year.
Over the last few weeks, financial managers have been covering many short situations as the new OPEC cuts and US sanctions on Venezuela oil have been on the # 39; strong market support.
Financial managers have built their long-term setting – the difference between the permissible and the brave bracket-side by side; most of 2019 to date.
However, the main driver for the increase in the long-term networking situation is short-term closing since the end of 2018, rather than being able to go. Updating that oil prices are rallying.
Attractive installments such as OPEC arrangements can be balanced on a & # 39; market with other collections of cuts and uncertainties about the Venezuelan oil export to support oil prices in the past weeks, and short sellers have been on sale. run to cover international commitments. As a result of traveling to # 39; In addition, there is a much larger situation, but markets need to be more transparent to restore the bulls and demand for rising oil prices, analysis says.
For the week that ended on January 29, the financing managers built their long web site in Brent Crude with 30 million barrels to 233 million barrels, according to data from ICE Futures Europe compiled by Reuters, John's market analysis Kemp. Related: Iran will add & # 39; Accessible & Frequent 160 Billion Barrels
From the beginning of December, hedge funding on the web site has been built with 96 million barrels and has expanded the network in seven out of eight weeks. However, the increase in the web site since the beginning of December has been particularly due to the closure of the short, rather than to be clear that a bull is back.
Between the 11th of December and the 29th of January, more than 60 per cent of shortcuts left 122 million barrels to 48 million barrels, but only 27 million barrels have gone up, Managers have reduced drug assets but are definitely not financially committed.
Due to the decline of the US government, the Scottish Conservative Trade Commission (CFTC) will not have grasped new WTI hard-standing data for next month.
"Species have continued to expand the web extensively in ICE Brent, when they bought 29,769 lots over the last last week, leaving a long line of 232,703 lots – the situation The largest that was held from the beginning of November. As we saw in the weeks, the increase in partnership has long been largely driven by a cover short rather than new ships, "said Warren Patterson, Head of Property Strategy at ING Monday, Comment on the latest positioning report.
Bruce Brent short jobs fell on the week to 29 January to the lowest number since the end of October 2018, according to ICE Futures Europe's colorants collated by Bloomberg. Related: Wood Mac: Oil results from Venezuela to 1 Million Bpd
In early October, Brent Crude and WTI crude their highest levels in four years, including fear of a tight oil market that enters US sanctions on Iran and the American promise for any oil exports in Iran. Most of its risk to & # 39; price already spent and the United States giving donations to largest consumers in Iran, coupled with global economic concerns; going slowly, oil market partners started to Prices up to 40 percent between the beginning of October and Christmas Eve.
With a short cover and explaining that the Q4 sale could be too big, the oil prices have always been the best in January, get around 18% – the biggest benefit for that month of the year is recorded.
Earlier in February, oil prices get the highest in more than two months as a result of OPEC cuts, sanctions on Venezuela, and signs of being able to get the best. making slow suspicion oil with a reduction in US street numbers.
The bull may need clearer signs from the global economy to begin to build long occupations in oil again. Signs of sustainable economic growth and progression in the US-China trade speeches could be the main drivers for a bull to return to oil. On the other hand, a warning could be & # 39; show how to & # 39; economic downturn in the world or any significant economic economy, as well as failure in trade talks and renewable war, awake again.
Le Tsvetana Paraskova for Oilprice.com
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