Speculators sharply increased bets on the increase in the price of WTI

Speculators sharply increased bets on the increase in the price of WTI

Moscow. February 1. Speculative players of the oil market sharply increased bets on a rise in the cost of oil, reports Bloomberg.

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According to the Commission on futures trading in commodities (CFTC) of the USA, the net long position (the difference between interest rates on the rise and fall of prices) hedge funds in WTI for the week ended January 26 increased by 35%, which has become the most significant jump since October 2010, to 110,432 thousand contracts.

During this period, hedge funds increased the number of long positions (bets on rising prices) oil WTI at 23,031 thousand contracts thousand contracts to 289,181, reducing the number of short positions on 5,444 thousand to 178,749 thousand contracts.

The cost of WTI crude oil finished growing for the second week in a row, it rose by 27% to its lowest level in 12 years, recorded earlier, on expectations the discussion of Russia and OPEC countries the possibility of reducing production.

“We see that traders continued to close short positions after the drop in oil prices to very low levels, notes the analyst of a hedge Fund Again Capital in new York John Kilduff. – Movement of oil prices in recent days was due to expectations of talks about the possibility of reducing production”.

Reduce production by 1 million barrels per day will lead “to the formation of the balance in the oil market in the first half and possibly to the shortage of oil in the second half of this year,” the analyst said TD Securities in Toronto Bart Melek.

Futures price for WTI crude oil for February in electronic trading on the new York Mercantile exchange (NYMEX) to 10:42 GMT on Monday fell by $0,71 (2,11%) to $32,91 per barrel.