Belief Spreads That Oil Prices Are Bottoming Out Now

From Bloomberg:
Andy Hall and Daniel Yergin think oil prices are bottoming out. Hedge funds agree. 
Money managers’ net-long position in West Texas Intermediate crude rose 20 percent in the week ended Nov. 3, the most in seven months, according to data from the U.S. Commodity Futures Trading Commission. Bets on rising prices increased to the highest level since June. 
U.S. onshore oil production fell for the fifth month in a row in August and supplies grew at the slowest pace since September in the week ended Oct. 30. Inventory data don’t indicate a surplus in the crude market and prices are set to rise, said Hall, one of the world’s best-known oil traders. Global supply and demand will begin to move into balance by late 2016 or 2017, according to Yergin, a Pulitzer Prize-winning oil historian.

“The fundamentals are starting to play out,” said David Pursell, a managing director at investment bank Tudor Pickering Holt & Co. in Houston. “You’ve got greater recognition that U.S. supply is falling and maybe falling faster. Inventories are building, but the pace of that build is more manageable.”
Click here to continue reading.

Connect with us on Facebook and Twitter!

Popular posts from this blog

Fracktivist in Dimock Releases Carefully Edited Video, Refuses to Release the Rest

The Second Largest Oil and Gas Merger - Cabot and Cimarex

Josh Fox Takes Another Approach to Attacking Oil & Gas Industry: They Don't Care About Worker Safety