Bullish Oil Wagers Cut in Sign of Growing OPEC Skepticism – Bloomberg.
Speculators are the least bullish on U.S. crude in 20 months as they lose faith in OPEC’s willingness to ease a global supply glut.
Money managers reduced net-longpositions in West Texas Intermediate by 8 percent in the week ended Nov. 4, U.S. Commodity Futures Trading Commission data show. Long positions retreated to the least since May 2013 while short holdings rose.
WTI tumbled into a bear market this year as crude supply expanded from the U.S. toLibya and demand sputtered from Europe to China. Saudi Arabia cut its export charges to the U.S. this month, signaling a preference for market share over prices. The kingdom accounts for almost a third of OPEC’s output and the 12-nation group meets in about two weeks to debate supply.
“The market needs some OPEC action and the only thing we get out of the Saudis is the price cut to the U.S.,” Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by phone Nov. 7 “That makes people think ‘Gee, this doesn’t look hopeful.’”
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