Tortoise's Nick Holmes quoted in Bloomberg

Crude Oil Market Rallies on Fading Fears of a Glut

  • Wagers on rising U.S. crude price reach highest since October
  • Positive sentiment may be close to peak: U.S. Bank’s Haworth

The oil market has all but forgotten last year’s price crash.
Money managers haven’t been this optimistic about U.S. oil prices since early October, just before the crude market began a steep decline on fears of a global oversupply. Crude made a steady comeback this year and sentiment has climbed alongside it, with the net-long position rising for the sixth straight week in data posted on Friday.
West Texas Intermediate crude prices rallied almost 5 percent this week as OPEC stuck to output cuts and blackouts continued to sap Venezuelan production. While the economic outlook remains uncertain, there have been enough positive signs — including encouraging U.S. jobs data — to allay the worst fears about demand, said Nick Holmes, an analyst at Leawood, Kansas-based Tortoise.
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