By Carlos Caminada and Kriti GuptaHedge funds are approaching the end of the year more optimistic on global oil prices than theyve been since May.Their net-bullish wagers on Brent crude climbed for the ninth week in 10, reaching a seven-month high, data released Friday show.
The United States -China trade truce and OPECs commitment to deeper cuts have pushed futures to their highest since an attack on Saudi facilities in September.
But skepticism is also creeping in, with short-selling increasing the most since October.Its a disaster waiting to happen, said Bob Yawger at Mizuho Securities USA.
Were seeing the largest net-long speculative position in both West Texas Intermediate and Brent in seven months, he said.Money managers Brent net-long position, or the difference between bullish and bearish bets, climbed 1% to 402,455 futures and options, the highest level since May, according to ICE Futures Europe data for the week ended Dec.
24.
Long-only wagers rose 2.4%, while shorts increased 11%.The United States Commodity Futures Trading Commission will release its report with wagers on West Texas Intermediate crude on Monday because of the Christmas holiday.