Hedge Funds Reduced Their Bullish Bets on Crude Oil

"This unwinding of position is both a cause and reflection of the big fall in crude oil prices when the cracks in the OPEC / non-OPEC deal emerged". If OPEC and non-OPEC investors start to talk seriously about extending the plan to cut output then we could see the start of a short-covering rally.

Baker said this would "support the case for a shift from contango to backwardation in the crude markets during the second-half 2017".

Under broader pressure from the so-called Brexit, crude oil prices moved lower early Monday on a hangover from higher US exploration and production work.

United States oil prices dipped below US$50 (RM221) a barrel for the first time in 2017 this month as near-record American stockpiles and rising output weighed on the production reductions by Opec and its allies. Oil demand will also continue to rise this year and in the next few years, he said.

An upgrade in non-Opec supply prospects led analysts at JP Morgan to cut their 2017 and 2018 price forecasts to $55.75 and $55.50 for Brent and to $53.75 and $53.50 for WTI, respectively.

The chart above shows how oil prices have fared since OPEC announced its supply cut past year until date.

Leafs get Carrick back for Bruins showdown
Ondrej Palat has compiled three goals and six assists but has scored just once since tallying a pair of goals on February 21. Marchand has found that flawless balance of aggression and scoring that has put the Bruins back in the playoff race.

Brent for May settlement slipped 14 cents to US$51.62 a barrel on the London-based ICE Futures Europe exchange. Though some of the OPEC members have indicated their willingness to prolong the cuts, comments by Saudi Arabia and Russian Federation, world's largest crude producers and effectively leaders of the OPEC and non-OPEC blocs in the production restraint deals, carry far more weight.

Opec will meet 25 May in Vienna, Austria, to decide whether to extend its 1.2m bpd production cut.

Falih notes that OPEC is committed to cutting supply as much as necessary until there's an uptrend in oil prices. After forecasting production declines for 2017, USA federal data instead show steady gains and production so far in March has been at around 9 million barrels per day.

However, U.S. shale producers can't continue to increase their output indefinitely.

Meanwhile, the deal between Opec and non-Opec producers, which was agreed late past year and aimed to curb production, appears to be having little effect on the glut at the moment, with three of the last four weeks showing substantial inventory increases.

Recommended News

  • Samsung Galaxy S8 colour options and price revealed

    Samsung Galaxy S8 colour options and price revealed

    However, it's important to note that Samsung and USA carriers generally price its phones a bit lower than the exchange rate. The Samsung Pay feature will use a combination of these features to be more full proof and less prone to hacking.

    A Surprising Date For The Rescheduled Manchester Derby Has Been Announced

    Middlesbrough's caretaker boss Steve Agnew will be looking for their first win in 10 matches in the Premier League. Manchester United are unbeaten in eight league meetings since a 4-1 defeat on Teesside in October 2005 (W5, D3).

    Uber President Jeff Jones quits after mere 6 months

    The company has been in the middle of multiple scandals, as well as unexpected resignations. After just six months, Uber's president of ride sharing Jeff Jones has left the company.
  • Tom Brady's Super Bowl jersey reportedly found

    Tom Brady's Super Bowl jersey reportedly found

    He then reported the "NFL believes the jersey was stolen by someone posing as worldwide media member". Authorities said they are considering criminal charges against Ortego, pending further investigation.
    Here is everything you need to know about the Samsung Galaxy S8

    Here is everything you need to know about the Samsung Galaxy S8

    The connectivity aspects of the Galaxy C7 Pro include 4G LTE, USB Type-C port, dual-SIM card support, and other common features. Therefore if you are eager to see the power of this upcoming device then opinion polls can give you the idea about it.
    Edamame product recalled due to Listeria fears

    Edamame product recalled due to Listeria fears

    In pregnant women, listeriosis can cause miscarriage, stillbirth, premature labor and serious illness or death in newborns. The company has notified all retail locations of the recall, so the product should no longer be available for purchase.
  • WWE WrestleMania 33: Is Bayley vs. Sasha Banks Inevitable After the Show?

    WWE WrestleMania 33: Is Bayley vs. Sasha Banks Inevitable After the Show?

    Nia Jax's inclusion in the match confirms the rumours that circulated insinuating that she would be included in the match. After Stephanie McMahon fired General Manager Mick Foley, a group of people told Foley goodbye as he was leaving.

    Adam Lallana apologised to Liverpool teammates after horror miss against Manchester City

    However, it wasn't until the 19th minute when City actually went behind the Liverpool rearguard. "They played very well again". But goalkeeper Caballero agreed City had shown character at a crucial stage in their season. "It was hard .

    Uber President Leaving Company After Just Six Months

    Google sister company Waymo is now suing Uber for allegedly stealing its self-driving auto technology and infringing its patents. McClendon told Reuters that he is interested in politics, and to explore this, he is moving back to Kansas, where he grew up.
  • Colorado wildfire forces hundreds of people to evacuate their homes

    Colorado wildfire forces hundreds of people to evacuate their homes

    The fire has burned just over 60 acres a couple of miles from the university town's main shopping and dining thoroughfare. Firefighters plan to monitor the perimeter of the 62-acre fire and focus on protecting structures overnight.
    Awful Reasons to Take Social Security Benefits at 70

    Awful Reasons to Take Social Security Benefits at 70

    Part of that commitment is ensuring you have the most up-to-date information when you make your retirement decisions. If you have a friend who lost a parent when they were a child, they probably got Social Security survivors benefits.
    Merkel reserves right to block Turkish campaign appearances

    Merkel reserves right to block Turkish campaign appearances

    Turkish politicians have repeatedly slammed Germany for turning a blind eye to terrorist organizations such as the PKK. The spokesperson also said that "Turkophobia is on the rise in Europe". "This is impertinence.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.