21 Nov

Hedge Funds’ Net Long Positions on US Crude Oil

WRITTEN BY Gordon Kristopher

Hedge funds 

The U.S. Commodity Futures Trading Commission released its weekly “Commitment of Traders” report on November 17, 2017. It stated that hedge funds increased their net long positions in US crude oil (UWT) (DWT) futures and options by 31,906 contracts to 349,712 contracts on November 7–14, 2017. Positions increased 10% week-over-week and 114.1% or by 186,391 contracts year-over-year.

Hedge funds’ net bullish positions in WTI crude oil (UCO) (USO) futures and options are at a seven-month high. It signals that hedge funds are bullish on crude oil (SCO) (DBO) prices ahead of OPEC’s meeting.

Hedge Funds’ Net Long Positions on US Crude Oil

Crude oil price forecasts  

Energy intelligence company FGE expects that Brent crude oil prices could trade between $65 and $70 per barrel in 2018 if ongoing production cuts are extended until December 2018.

Meanwhile, a market survey of energy producers’ (VDE) (IEZ) top management estimated that oil (BNO) (USL) prices could trade lower than $60 per barrel in 2018.

The EIA estimates that US crude oil (SCO) (DWT) prices could average $51.04 per barrel in 2018, while Brent oil prices could average $55.61 per barrel in 2018. US crude oil production could be the biggest bearish driver for oil prices in 2018.

Read Crude Oil: Will the Bears Overshadow the Bulls? and Will US natural gas futures continue its downward momentum next week? for updates on oil and gas.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

14 Jun

Why Kimberly-Clark Stock May Stop Rising


Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.