Financials: Opec Cut Knocks Speculators Betting on Lower Prices

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Futures contracts and options in crude oil are the favorite instruments for speculative capital as the latter slowly returns to the oil market. Banks and funds have lowered their bets on falling prices after the Dec. 5 Opec-plus output cut while adding volumes to bets on rising prices. Total capital committed to net longs on rising prices was the equivalent of $37 billion mid-October, which is 25% higher than mid-September. Opec-plus was a decisive force in attracting more speculative capital, which it encourages as long as this money bets on higher prices.

Oil Futures and Derivatives, Oil Forecasts, Crude Oil, Diesel/Gasoil
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