Hedge funds were seen moving towards oil too quickly and boosted bullish trends amidst a rebound last week. However the moments of glory were short lived and ever increasing US Crude supplies pushed the prices to a two year low.
Net-long positions in West Texas Intermediate futures gained 5.7 percent in the 7 days ending Oct. 21st, according to data released by U.S. Commodity Futures Trading Commission. Short bets fell 20 percent, the most in three months, while longs shrank by 2.8 percent.
The rise was predicted by analysts but it sank to the floor soon, WTI sank again after oil stockpiles rose. It fell to $80.52 on Oct. 22, the lowest settlement since June 2012, and ended the week down 24 percent from the year’s high. The US benchmark also fell into the bear market on October 9th and could dip to $75 at the end of the year as per the predictions given by the American Corp.
After rising as analysts speculated prices had reached a floor, WTI sank again after stockpiles climbed nationally and at Cushing, Oklahoma, the delivery point for New York Mercantile Exchange futures. It fell to The U.S. benchmark, which slipped into a bear market Oct. 9, may dip to $75 by the end of year, Bank of America Corp. said Oct. 23.cialis bathroom