Oil prices crept up towards 27-month highs in trading yesterday, staring the new year off to a fast start.
Signs of increased economic recovery across the globe combined with a fall in U.S. crude inventories for the fifth week in a row has contributed to the run in oil prices, and many analysts believe the trend is here to stay.
Futures rose 0.2% yesterday, with contracts for February delivery reaching as high as $92.58 in trading, the highest since Oct 7, 2008.
According to the CFTC’s weekly commitments of traders report, hedge fund bets on crude have reached their highest levels in nearly four years, with managers betting on a continued oil rally. Net-long positions increased by 4.6% in the week leading up to Dec 28th, the largest total since June of 2006. Read more…