Reuters: Hedge Funds Expect Crude Oil Rally

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Are hedge funds bullish on crude-oil again? Reuters thinks so, according to a report yesterday.

An article titled “Hedge funds bet on oil’s ‘big comeback’ after pandemic hobbles producers” says fossil-fuel production is expected to rebound slowly after coronavirus. One of the investors quoted sees Brent crude climbing another 17-25 percent by the end of 2021.

The hedge-fund managers added that the market’s recent focus on “ESG” investing (solar energy, electric cars) has reduced interest in oil-service providers. That, they believe will also constrain supply at the same time travel returns to pre-coronavirus levels.

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David Russell is VP of Market Intelligence at TradeStation Group. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.