Oil Prices Fall As Hedge Funds Throw In The Towel

3 May 2017   Prices

Oil prices fell on Monday and Tuesday as hedge funds and money managers have started to cut bullish positions in oil in a reaction to quickly growing supply (Click to enlarge) (Click to enlarge) Chart of the Week (Click to enlarge) • Throughout the three-year oil price downturn, Permian oil production continued to climb, even as other shale basins saw rigs and drilling activity disappear. • But now oil production is actually starting to rise across all the major shale basins. • The Eagle Ford, for example, saw production fall by a whopping 600,000 bpd over the past two years, falling to just 1.14 mb/d in February of this year. But bouncing off of that low, the Eagle Ford is rising again. Production is expected to jump by 39,000 bpd in May compared to April. Market Movers • Pembina Pipeline (NYSE: PBA) agreed to buy Veresen (OTC: FCGYF) for […]

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