The prospect of production cuts by OPEC and its allies, have encouraged hedge funds and other money managers back into the oil market, according to a report by Reuters.
The report cites regulatory records as revealing that the equivalent of 62 million barrels in the six most important petroleum futures and options contracts were purchased in the week ending 4 October.
Crude (+46 million barrels) rather than fuels (+15 million) attracted the most activity ahead of a decision by OPEC+ on 5 October to cut the group’s combined output allocations by tow million barrels per day.
Portfolio managers also purchased Brent (+27 million barrels), NYMEX and ICE WTI (+19 million), European gas oil (+6 million), US diesel (+6 million) and US gasoline (+4 million).
