• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
  • Industry Data
    • Canada Oil Market Data
    • Canada NG Market Data
    • USA Market Data
    • Data Downloads
  • Jobs

Column: Oil bulls retreat as economic outlook darkens

July 4, 20226:00 AM Reuters0 Comments

Steel long pipes in crude oil factory during sunset

Investors continued to liquidate bullish long positions in petroleum last week as the economic outlook deteriorated though the rate of selling was much slower after heavy selling the week before.

Hedge funds and other money managers sold the equivalent of 9 million barrels in the six most important futures and options contracts in the week to June 28, following on from sales of 71 million in the week to June 21.

Most the recent adjustment has come from the liquidation of former bullish long positions as the outlook for the economy and oil consumption has darkened amid rising inflation and interest rates.

Fear of more U.S. and EU sanctions on Russia’s petroleum exports has so far deterred aggressive short selling of the oil complex.

Over the last three weeks, the total number of bullish long positions has been reduced by 87 million barrels, while bearish short positions have boosted marginally by 5 million barrels ().

The most recent week saw sales of Brent (-12 million barrels), European gas oil (-4 million), U.S. gasoline (-3 million) and U.S. diesel (-2 million) partially offset by purchases of NYMEX and ICE WTI (+11 million).

Upside price risks from sanctions on Russia’s crude and distillates are now matched or over-matched by downside risks from the loss of momentum in manufacturing and freight.

As a result, fund managers have gradually taken risk off the table, with the combined position down to 556 million barrels (39th percentile for all weeks since 2013) from 761 million (71st percentile) in mid-January.

John Kemp is a Reuters market analyst. The views expressed are his own.

 

Column

Follow the BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Musqueam Indian Band and FortisBC Holdings Inc. sign Tilbury LNG Projects Agreement
  • US oil output rises to highest since April 2020
  • U.S. natgas futures slip 1% on less hot forecasts
  • Oil drops on Druzhba pipeline news and U.S. inflation expectations
  • XI Technologies: M&A Snapshot – Tourmaline Oil Corp and Rising Star Resources Ltd.

Return to Home
Alberta Gas
CAD/GJ
Market Data by TradingView

    Report Error





    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    • Foxterra
    BOE Network
    © 2022 Grobes Media Inc.