Hedge funds and other money managers expanded their bullish bets on oil prices last week amid signs that U.S. shale growth is slowing, the global oil market is further tightening, and oil demand could be resilient in the coming months.
Portfolio managers increased their combined net long position, the difference between bullish and bearish bets, in the six most important oil contracts by 37 million barrels in the week to March 26, according to the latest exchanges reports compiled by Reuters market analyst John Kemp.
The net long increased thanks to the opening of 33 million barrels of bullish positions and a drop by 4 million barrels in the short positions.
Reabold Resources (LON:RBD) invests in operating companies whose main value driver is the oil & gas asset of interest. Reabold can thereby run a low-cost, non-operator business model where the monetisation versus the entry price of the oil & gas projects it invests in will be the key determinant of value. Monetisation of investments depends on the extent of any success and market conditions. These include an asset sale, IPO or putting the asset into production.
