Copyright Pattawit / Adob eStock
Portfolio investors have begun to reassess their previous concerns about the potential impact of coronavirus omicron variants on major economies and passenger aviation in 2022 and reestablish a bullish position in the oil market. rice field.
Hedge funds and other money managers purchased 54 million barrels worth of six of the most important oil futures and options contracts during the week ending December 28.
According to records released by regulators and exchanges, the fund has sold 327 million barrels in the last 10 weeks and then purchased a total of 70 million barrels in the last two weeks.
Last week’s buying was the fastest since August, demonstrating a sharp recovery from previously bearish investor sentiment at the fastest rates of over a year.
The purchase was fairly evenly split between the establishment of the new bullish long position (+32 million barrels) and the closure of the previous bearish short position (-22 million barrels).
The ratio of long and short positions increased from 3.83: 1 (47th percentile) two weeks ago to 4.86: 1 (64th percentile for all weeks since 2013).
In the last week, the fund was a major buyer of Brent (+33 million barrels) and NYMEX and ICE WTI (+15 million), with low purchases of gasoline in Europe (+7 million).
US kerosene purchases were small (+1 million barrels) and US gasoline sales were small (2 million barrels).
The buying pattern focused on crude oil and intermediate fractions is consistent with the continued rise in the macroeconomic cycle, despite the rapid spread of Omicron.
The fund is calculating pessimism about the global recovery and impact on international quarantine that squeezed oil prices in November and early December.
Portfolio managers have calculated a continued recovery in oil consumption, including jet fuel, and prices will continue to rise in 2022, coupled with limited production growth by OPEC, its allies, and US shale companies. increase.
https://www.oedigital.com/news/493235-markets-as-omicron-threat-fades-oil-bulls-return Oil Bull as Omicron’s threat diminishes