For the week to 19 April hedge funds have increased bets on the appreciation of WTI to the highest level since may of last year, according to the trading Commission commodity futures U.S. (CFTC). The number of net long positions in WTI increased by 30 357 contracts, or 4.8%, to 245 987 futures and options. The number of bets to a reduction in the benchmark, by contrast, fell by 19% during the reporting week.
The failure of the negotiations leading oil countries in the “freezing” of production had no significant impact on the tactics of hedge funds. After the fiasco in Doha the price of WTI crude oil jumped 8.3%. Investor optimism due to reduced production in the U.S., and growing demand for gasoline ahead of the holiday season, when traditional marked increase in the number of car trips.
Gasoline consumption in the U.S. in March rose to its high for the month, or 9.25 million Barr./day announced on April 21, the American petroleum Institute. Gasoline consumption in the USA increased by 3.9% in the four weeks to April 15, up to 9,39 million barrels., data of the energy information Agency at the U.S. Department of energy (Energy Information Administration, EIA). Demand for gasoline this summer will increase by 1.4% to reach a record level, EIA said in the forecast from April 12.
“Pointless to short the oil in anticipation of the summer because of high demand for gasoline, said the Agency Bloomberg Scott Roberts, managing assets of $2.7 billion at Invesco Advisers Inc. — Refineries resume operation will grow and demand for oil.”
Oil prices have dropped by 6.8% on April 18, a day later after fruitless consultations in the Qatari capital. But amid news of a strike by oil workers in Kuwait, the fourth largest oil producers in OPEC, quotes played to 1.4%. “Investors…would want to buy at the bottom, said Bloomberg Tim Evans, an analyst with energy sector industry informresurs Citi Futures Perspective. — Negative market reaction to the absence of an agreement on “freezing” has come to naught in a matter of hours”.
The cost of oil futures rose on 20 April, after the release of data on production in the U.S. — the lowest since October 2014. With February, the U.S. refinery demand for oil has grown by 600 thousand Barr./day. “Gasoline is in high demand, and that will support oil prices”, — quotes Agency the words of Thomas Finlon, Director of the analytical company Energy Analytics Group.