Portfolio buyers bought oil futures and choices for the second week working as a minimum of some fund managers concluded that expectations of a recession and a latest sell-off had been overdone.
Hedge funds and different cash managers bought the equal of 31 million barrels within the six most necessary petroleum futures and choices contracts within the week ending on July 19.
Shopping for was closely weighted in the direction of the initiation of latest bullish lengthy positions (+26 million barrels) quite than liquidation of present bearish shorts (-5 million).
It was centered on crude quite than merchandise with purchases of each Brent (+15 million barrels) and NYMEX and ICE WTI (+15 million).
There have been solely minor changes in U.S. gasoline (+2 million barrels), U.S. diesel (+1 million) and European gasoline oil (-3 million).
Even after the shopping for, the web place throughout all six contracts is comparatively low at simply 485 million barrels (twenty eighth percentile for all weeks since 2013). Crude positions are particularly low at simply 381 million barrels (twenty first percentile).
Comparatively bearish positioning, mixed with the retreat in costs that set in after the center of June, has improved the risk-reward ratio and inspired a minimum of some buyers to re-enter the market to revenue from any rebound.
Supply: Reuters (Modifying by Barbara Lewis)