Oil producing giants play game theory to stem oversupply as hedge funds rush to bet on a rebound in the oil price
Oil producing giants play game theory to stem oversupply as hedge funds rush to bet on a rebound in the oil price. Never letting a good crisis go to waste, hedge funds are increasing bets that the crude price is close to rebounding. These professional traders have bought 31,303 long contracts in the week ended December 2, while figures from CFTC show a 14% uplift in net long-positions, reported Bloomberg. This optimistic sentiment isn't shared locally if short-selling data is anything to go by. As the chart shows, short positions in our oil & gas producers have increased consistently if you ignore the short covering in ROC and HZN, which is due to corporate activity. Oil hit a 2014 high in June. I've no doubt that at some stage energy stocks will be worth snapping up, but it's probably too early to be bargain hunting in the sector. You know what they say about trying to catch a falling knife... you first! Meanwhile if OPEC's decision to hold quotas has stumped you, it shouldn't. Click to read more (VIEW LINK)
I am with Australia's leading small caps investor relations and media relations firm, Media & Capital Partners. I worked as a small caps analyst and journalist prior to MC Partners. Views are my own and should not be regarded as advice or...
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