During the week 16 to 23 February, the total number of long positions opened by the buyers of futures and options on Brent crude on the ICE stock exchange increased by more than 12% and has exceeded 320 thousand, according to Reuters. According to the Agency, such amount of long positions on ICE were not recorded from the beginning of the statistics, i.e. since 2011.
According to ICE, the total number of open oil investors long positions by nearly 28 thousand exceeded the previous record, recorded on the stock exchange on 2 February 2016 (to 292.3 million). This rapid growth demonstrates the confidence of investors that the price of Brent will grow.
Simultaneously, the number of long positions opened by the buyers of futures and options on WTI crude oil increased last week by 14%, reaching the highest level since November of last year, according to Bloomberg.
According to John Kilduff, partner of new York hedge Fund Again Capital causes reports of possible freeze of the largest oil producers in the volume of its production. “While there is only a lot of talk and no action, but has already had an impact,” — said the expert.
In mid February 2016, the representatives of the ministries of energy of Russia, Qatar, Saudi Arabia and Venezuela have agreed on the possibility to freeze oil production at the level of 11 January. Later its support for the initiative in one form or another, stated the representatives of several other oil-producing countries.
March 1, Russian President Vladimir Putin plans to meet with the heads of major Russian oil companies. The theme of the meeting is not officially announced, but according to sources, the President may discuss with industry leaders the issues relating to the freezing of oil production.
During today’s trading, the price of a barrel of Brent rose to $36,41 (at 2.74% above level of closing of previous trading day), the price of a barrel WTI — to $to 33.52 (+2,26%).