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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