Hedge funds hold net short position on 13 million barrels of crude oil
September 16, 2024
The Baker Hughes Rig Count was up five oil rigs to a total of 488 and last year at this time there were 515 oil rigs.
Energy markets were trading higher for most of the day on Friday but did sell back off late in the trading session as they got near to the close of the day. With the threat of a hurricane and then a hurricane hitting some gulf coast refineries I would say it is a bit disappointing for the bulls that all these markets can muster is a slight bounce. It has to call into question a bullish rebound. Both crude oil and RBOB charts could look more bullish with a strong move higher this week, but again the bulls have work to do.
This week the Fed has their meeting at this will be a big focus for traders. The most likely outcome is a 25 basis point cut to rates.
As of Sunday, 338,690 barrels of crude oil production and 515 million cubic feet per day of natural gas production remain offline in the Gulf of Mexico as producers deal with the impact of Hurricane Francine.
Crack spreads are weak, and hedge funds are piling on to the downside in historic fashion. John Kemp wrote that “Hedge funds and other money managers sold the equivalent of 54 million barrels in futures and options tied to Brent crude prices over the seven days ending on September 10. For the first time in more than a decade, fund managers had a net short position of 13 million barrels.