icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
8 Feb, 2016 11:08

Investors betting on crude as exporters attempt to stabilize market

Investors betting on crude as exporters attempt to stabilize market

A record number of investors are betting on oil since the US Commodity Futures Trading Commission started tracking data in 2006, Bloomberg reports.

Reports that oil producers are willing to combine efforts to balance the market have boosted investor confidence. Speculators are placing wages that crude prices are close to bottoming out.

Venezuelan Oil Minister Eulogio Del Pino said six OPEC-members had agreed to hold an urgent meeting to discuss possible production cuts.

"These efforts to come to an agreement between OPEC and non-OPEC have boosted optimism that an end to the rout is near," said Michael Lynch, president of Strategic Energy & Economic Research in Massachusetts. He added that the chance of success is slight, but any sign of action is eagerly awaited.

Speculators' short and long positions in the US crude benchmark West Texas Intermediate (WTI) rose to nearly half-a-million futures and options, according to Bloomberg. WTI crude has gained 15 percent since the January lows of less than $27 per barrel. 

“We’re seeing a battle royal between those who think a bottom has been put in and those who think we have lower to go,” said John Kilduff, a partner at a New York-based hedge fund Again Capital.

READ MORE: Obama's $10 per barrel oil tax 'dead on arrival in Congress’ - Republicans

Since June 2014, crude prices have fallen from over $100 per barrel to about $30 as of Monday.

Podcasts
0:00
23:13
0:00
25:0