To: Goose94 who wrote (27164 ) 3/14/2017 3:58:24 PM From: Goose94 Read Replies (1) | Respond to Crude oil fears of oversupply and bearish reports from both the EIA and OPEC then sent oil prices falling once again, with record high inventories refusing to budge. “Apart from the survey-based production figures, there is little to suggest as yet that this market tightening has already begun,” Commerzbank said this week. Stuart Ive of OM Financial echoed this concern: “Unless there are positive signs from non-OPEC producers on production cuts or there is a significant supply outage, the relentless pursuit of the U.S. shale production will cut into OPEC’s plans,” he told the WSJ.Hedge funds slash bullish bets. Hedge funds and other money managers cut their net-long positions on WTI and Brent last week to a one-month low. Aside from a few exceptions, speculators have built up bullish bets on crude nearly every week since the OPEC deal was announced in late November. Now, with the market still oversupplied and U.S. inventories swelling, bearish sentiment is back. "This report is just the beginning," John Kilduff, a partner at Again Capital LLC, said in response to the horrific EIA report last week. "The volume and breadth of the decline this week show that there was massive liquidation. Next week’s report will be the blockbuster." If EIA data reveals another week of large crude oil inventory gains, WTI and Brent could fall further as investors bail out on their net-long positions. Russia says oil price war still possible. Russia’s Rosneft said that the rapid rise in U.S. shale oil production could undermine OPEC’s commitment to its deal to cut output. As OPEC loses market share without the benefit of higher prices, the willingness to extend those cuts through the end of the year could evaporate. In that case, Rosneft cautions, another price war could take place in which all parties fight for market share. This prediction stands in stark contrast to the growing whispers of support for an extension from within OPEC. Kuwait became the first country this week to officially endorse a six-month extension of the deal in an effort to balance the market.
