TORONTO - Hedge funds are turning bullish on oil once again, betting the pandemic and investors’ environmental focus has severely damaged companies’ ability to ramp up production.
Global oil benchmark Brent has jumped 59% since early November when news of successful vaccines emerged, after COVID-19 travel curbs and lockdowns last year hammered fuel demand and collapsed oil prices. Last week it hit pre-pandemic levels close to $60 a barrel.“By the summer, the vaccine should be widely provided and just in time for summer travel and I think things are going to go gangbusters,” said David D.
The Organization of the Petroleum Exporting Countries, which has also revised down demand growth, however, still expects output cuts to keep the market in deficit throughout 2021. Some banks are forecasting the United States, which leads with the number of COVID-19 cases, to reach herd immunity by July, which would greatly stimulate oil demand, said Jean-Louis Le Mee, head of London-based hedge fund Westbeck Capital Management, which is long a mix of oil futures and equities.
Poof
This is greedy agenda laden PR from/for oil hedgers & right off the bat features quote from dude who owns hedge fund & is also interim CEO of energy company. To promote this is criminal. Surely ya’ll aware glacier snapped & swept down mountain killing folks?ClimateEmergencyNow
I'm also betting on a recovery. As summer approaches, individuals will plan camping trips and other travel, driving up demand for oil (flights, gasoline, diesel, lubricants, plastics, etc.). Trade-weighted index is also low. Surely, a set back would be another wave/lockdown.
Energy stocks already up. Check BKR, HFC, HP so on! How much more? Fundamentals bad right now. Expect only small improvement. To me trading plays. Rather than long term. Anyone long term these days? Anyone investor? Hedge funds? Investors or speculators?
Another good reason for pursuing a fossil fuel free future.
They know the JoeBiden administration will bring back higher oil and gas prices
PknOrlensqueeze
No!
um what else goes into those ships and equipment today to operate them ? cheers.
Regret is a waste of energy. Don't stay home and not get paid, buy Bitcoin and register with a license trading company to earn guaranteed Passive income (13% interest on all your investment) lisaMakT
Especially since the current administration is hell bent on making sure we're no longer energy independent...
🤣🤣🤣 I wish these dinosaurs would come into the future. The grip that the oil industry has on society has to end. The wars, devistation all caused over this crap. Leave it in the ground. Thats where it belongs.
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