Hedge funds have lost faith in the growth of oil prices

Hedge funds have lost faith in the growth of oil prices

Moscow. April 4. Hedge funds have lost faith in the possibility of a continuation of the rally in the oil market in connection with the doubts of market participants in the willingness of oil-producing countries to agree on the freezing of oil production, reports Bloomberg.

The cost of WTI crude oil ended last week lower for the first time since mid-February. The price of WTI, falls in February to a low of nearly 13 years, has grown substantially since that time, with Saudi Arabia, Russia, Venezuela and Qatar on the freezing of production.

Freezing oil will be discussed at a meeting of manufacturers in Doha on April 17. Twelve States oil producers have confirmed their participation in the meeting, members of OPEC not only Libya.

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Iran has made it clear that it will participate in the meeting but does not intend to cut production because it expects to regain the market share lost during the sanctions.

On Friday, Saudi Arabia announced that it will freeze production only if other major producers, including Iran, will join the decision.

“Doubts about the Doha meeting was a lot more to the statements of Saudi Arabia, said oil analyst for Societe Generale in new York, Mike Wittner. Experts who follow this subject, inclined to the view that even if the decision to freeze production without Iran’s participation would be taken, it may not lead to anything”.

“Short” positions (bets on lower prices) on oil WTI for the week ended March 29 increased by 17%, the biggest jump since November, to 75,598 thousand futures and options, according to the Commission on futures trading in commodities (CFTC) of the USA.

Bets on the rising cost of oil fell by 1.2% to 296,614 thousand positions.

As a result, net long positions in WTI declined by 6.3% to 221,016 thousand contracts.

Futures price for WTI crude oil for may in electronic trading on the new York Mercantile exchange (NYMEX) on Monday declined 0.6% to us $36,57 per barrel.