Oil bullishness hits four-month high

Bloomberg

It seems hedge funds are jumping on the $100 crude bandwagon.
As speculation increases that global oil prices could again trade that high, money managers are piling on bullish wagers, while short-selling shrinks. They are the most optimistic on a rally of Brent crude in over four months. This week, the benchmark closed above $80 for the first time since 2014.
“If you look at oil, it’s been the hot commodity. It’s the place to go right now,” said Rob Thummel, managing director at Tortoise, which manages $16 billion in energy-related assets. “Everyone is recognising that there is not a lot of spare capacity. There is not a lot of margin for error in the
oil markets right now.”
As Iranian and Venezuelan barrels disappear from the market, Trafigura Group and Mercuria Energy Group Ltd. are two of the major oil-trading houses predicting a return to three-digit prices.
Patrick Pouyanne, the chief executive officer of oil giant Total SA, echoed their call.
“The price action itself is going to attract attention,” said Bill O’Grady, chief market strategist at Confluence Investment Management LLC in St. Louis “But, the underlying fundamentals are actually pretty bullish.”
Hedge funds’ net-long position in Brent rose 6.1 percent to 496,343 contracts for last week.