Optimism that Saudi Arabia and its OPEC+ allies will continue to restrict production ,coupled with an improving economic outlook boosting consumption, has prompted investors to purchase oil at the fastest rate seen in over four years, according to a report by Reuters.
Recent Ukrainian drone attacks on Russian oil refineries and export terminals have also contributed to the increase in bullish sentiment which has seen hedge funds and other investors purchase the equivalent of 140 million barrels in the six most important petroleum futures and options contracts in the seven day period ending 19 March.
According to position reports filed with exchanges and regulators, the rate of buying was the fastest seen since December 2019, and ranks among the ten fastest weeks since records began in 2013.
Most buying came from the creation of net new long positions of +111 million barrels, indicating an increase in bullish investor sentiment, with moderate amount of short covering amusing to -30 million barrels.
