Hedge funds lack conviction on oil outlook: Kemp

Financial Post | Jun 29, 2020 at 2:02 PM
  • Hedge funds increased their bullish positioning in oil last week, reversing a bearish move the week before, but the minimal changes serve to confirm the market’s lack of direction since the start of June.
  • The equivalent of 26 million barrels were purchased by hedge funds and other money managers in the six most important futures and options contracts in the week to June 23, after selling 16 million barrels the previous week.
  • Most of the increase was driven by the reduction of previous bearish short positions (-17 million barrels) rather than the creation of new bullish long ones (+9 million).