Hedge funds increased bets on rising crude prices to a record as fighting in Iraq threatened to disrupt supply from OPEC’s second-biggest member.
The worsening conflict in Iraq poses a bigger risk to long-term oil prices than traders anticipate, according to banks from Citigroup Inc. and Bank of America Corp.
Oil traders are too complacent about the longer-term threat of escalating violence in Iraq, banks from Citigroup Inc. to Bank of America Corp. said.
West Texas Intermediate and Brent trimmed earlier gains amid speculation that oil production in Iraq, OPEC’s second-largest producer, would remain unaffected by escalating violence.
The cold snap in the Eastern U.S. persuaded hedge funds and other speculators to keep betting on rising natural gas prices, accumulating the most bullish position for this time of year since at least 2010.
"Thermal coal markets around the world remain plagued by oversupply."
- Francisco Blanch on Jul 11, 2014
Blanch Says `Will Be Hard’ for WTI Crude to Rise
Blanch Says U.S. Fiscal Woes Will Push Up Gold
Blanch Says Commodity Prices to Remain Strong
Blanch Says U.S. Is `Saturated’ With Crude Oil
Blanch Says Paper-Backed ETFs Don’t Influence Prices