Hedge funds 

On July 7, 2017, the U.S. Commodity Futures Trading Commission released its weekly “Commitments of Traders” report. It showed that hedge funds increased their net long positions in US crude oil futures and options by 16,345 contracts or 12% to 149,951 contracts on June 27–July 4, 2017. Hedge funds’ net long position on US crude oil rose for the first time in four weeks. It suggests that hedge funds are turning bullish on crude oil (ERY) (ERX) (IXC).

Moves in crude oil prices impact oil and gas producers’ earnings like Swift Energy (SFY), Continental Resources (CLR), Apache (APA), and Comstock Resources (CRK).

Analyzing Hedge Funds’ Net Long Position on US Crude Oil

Crude oil price forecasts 

BNP Paribas estimates that WTI (West Texas Intermediate) crude oil prices will average $49 per barrel in 2017—$8 per barrel lower than previous estimates. BNP Paribas also estimates that Brent crude oil prices will average $51 per barrel in 2017—$9 per barrel lower than previous estimates.

Barron’s estimates that Brent crude oil prices could hit $60 per barrel by the end of 2017. OPEC’s production cut deal and improving global oil demand could drive crude oil prices higher.

The latest forecasts from Goldman Sachs estimate that US crude oil prices could average $47.50 per barrel in the next three months. WTI and Brent crude oil prices averaged $43.3 per barrel and $43.7 per barrel, respectively, in 2016.

Read Is It Time for US Crude Oil to Test $40 per Barrel?  and Will OPEC and Russia Pressure US and Brent Crude Oil Futures? to learn more about crude oil.

Latest articles

22 Jul

Economic Data and Earnings Before the Fed's Meeting

WRITTEN BY Mohit Oberoi, CFA

Economic data and earnings will keep investors busy this week. More than a quarter of the S&P 500 companies are scheduled to release their earnings.

22 Jul

Why UPS's Q2 Earnings Could Fall Year-over-Year

WRITTEN BY Anirudha Bhagat

UPS is scheduled to report its second-quarter earnings results on July 24. Estimates suggest that things aren't looking good for it this quarter.

Boeing (BA) plans to report its second-quarter 2019 results on July 24.

Hershey (HSY) is set to report its second-quarter results on Thursday. We expect Hershey’s sales and earnings to grow year-over-year, but that growth to be low.

22 Jul

Align Technology: What to Expect in Q2

WRITTEN BY Margaret Patrick

Align Technology (ALGN) plans to release its second-quarter earnings on July 24 after the market closes.

On July 19, Tilray was trading at a forward EV-to-sales multiple of 12.1x. The company was still trading at a premium to the peer median at 6.0x.