SEATTLE (polymers.in): Oil prices are rising and speculators are already staking out bullish positions on futures for the next few months.
- Some contracts that pay off big time if oil prices hit USD 100/bbl by December 2018 just saw a spike in interest.
One Group of Oil Investors Didn’t Cash In on Crude’s 2016 Rally
- WTI crude futures have gained 45%.
- The Standard and Poor’s 500 Energy Index has gained 26% this year.
- US Oil Fund grew from as little as USD 437 million in May 2014 to almost USD 4.3 billion in March.
US Stocks Near Record as Oil Gains, Bonds Fall
- S&P Index extended its monthly advance, with volume about 50% below the 30 day average.
- Stoxx Europe 600 Index rose 0.1%.
- Crude futures advanced 1.7% to USD 53.90/bbl.
- Gold futures for February delivery rose 0.5% to settle at USD 1139.10.
Russia sees oil products output down 2.5% in 2017
- Russia’s output of oil products is expected to fall by about 2.5% in 2017 due to further work on a massive refinery modernization program aimed at boosting fuel quality.
The Unsustainable $60 Oil Spike In 2017
- Crude oil sank to depths unseen since 2003, but recovered nicely to above USD 52/bbl by December.
- Brent to average USD 52/bbl and WTI to average USD 51/bbl in 2017.
- OPEC crude oil production is likely to be 33.2 million bbl/day in 2017.