US hedge fund holdings suggesting that the oil market short positions in oil being re-balanced

Updated: October 20, 2015  Views: 29

FX168 News Market analysts on Monday (October 19) that the major hedge funds during June to August this year began to holdings of US crude oil short positions in, or implied crude oil market has started to re-balance.

US Commodity Futures Trading Commission (CFTC) data show that as of October 13, the major hedge fund managers and other investment managers have short positions in the US WTI crude oil positions down to 9000 million barrels the previous week to 1.08 million barrels short positions positions , while US crude oil short positions had early August highs hit 1.63 billion barrels.

More data showed on Tuesday, a total of 57 hedge fund still holds a short position in US crude oil, compared with 66 in early August a modest decline, but average short position of only 158 million barrels, compared with 286 million barrels in early August Sale holding half.

Market analysts pointed out that such signs indicate the emergence of hedge funds on the US crude oil prices bearish attitude has not as strong as before. Even oil prices have been on hold bearish attitude Goldman (Goldman Sachs) also recently admitted that 'crude oil market balance positive signs are emerging, 'but also warned investors that the oil price rise will take time.

Barclays Capital (Barclays Capital), said: 'The current oil price is still not high enough, it can not be enhanced incentive crude oil production in the medium term, a significant rebound in oil demand once, the supply will not be able to bridge the gap in time, when oil prices surge phenomenon occurs fear.'

US oil service company Baker Hughes (Baker Hughes) data show that as of October 16 the week the oil decline in the number of active drilling 10-595 again, over the past seven weeks, reducing the total 80, have already indicated that shale oil production low oil pressure at the beginning of production.

US Energy Information Administration (EIA) data showed the US November shale oil production is expected to fall 9.3 million barrels a day, will create by far the largest single-month drop.

Market analysts said that with the gradual decline in the debt ratings of the major energy companies, the increasing difficulty of financing, which would make the United States energy companies more difficult situation, drilling activity is expected to be further reduced.

In addition, crude oil market demand boosted by lower oil prices appear to rise steadily, with the Asian economy continues to recover, oil demand recovery will provide support for oil prices.

However, due to continued sharp increase in US crude oil inventories, only a handful of hedge funds are willing holdings of US crude oil long positions, the major investment managers holding long positions in WTI crude oil increased by only 11 million barrels since August, while the same period minus short positions width reached 7300 million barrels, US crude oil futures, given the current attractive risk-reward ratio for short operations continued to reduce selling pressure on the crude oil market has dropped significantly. Get Top News, Latest News and Current News from Latest Current News: U.S., China, World, Entertainment, Health, Finance, Business, echnology, Travel, Politics, Sports.