{"id":585210,"date":"2023-04-12T00:00:00","date_gmt":"2023-04-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/12\/traders-rush-into-long-oil-positions-after-opec-cut\/"},"modified":"2023-04-12T00:00:00","modified_gmt":"2023-04-12T00:00:00","slug":"traders-rush-into-long-oil-positions-after-opec-cut","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/12\/traders-rush-into-long-oil-positions-after-opec-cut\/","title":{"rendered":"Traders rush into long oil positions after OPEC+ cut"},"content":{"rendered":"

<\/span>Traders go long on oil after surprise OPEC+ cut:<\/span> Net-long positions on Brent crude <\/span>saw their second-highest increase on record in the week up to 4 April after the oil cartel\u2019s shock move to cut more than 1 mn barrels per day of supply from the market, <\/span>Bloomberg<\/a><\/span> reports. \u201cWe expect bullish capital flows to continue for the time being as the production cuts will drive storage draws,\u201d Macquarie Group analysts said in a note. <\/span><\/p>\n

A rise in net-long wagers? <\/span>More traders took \u201clong\u201d positions \u2014 wagering that oil prices will rise \u2014 and fewer took \u201cshort\u201d positions \u2014 wagering that prices will fall. Many analysts are predicting crude prices to pass the USD 100 mark on the back of the cartel\u2019s move, though global recession fears are <\/span>clouding the outlook<\/a><\/span>. Brent is currently trading at just over USD 85 per barrel. <\/span><\/p>\n

Crypto is riding high:<\/span> BTC rose above USD 30k for the first time in 10 months <\/span>yesterday as the rally in digital assets that accompanied last month\u2019s banking crisis continues. <\/span>The cryptocurrency<\/span> peaked<\/span> at USD 30.5k<\/span> and was trading at arou<\/span>nd USD 30.2k a<\/span>s of midnight.<\/span> BTC has risen m<\/span>ore than 50%<\/span> since the second week of March, when the collapse of three mid-sized US lenders triggered fears of a global banking crisis, and is up 83% year-to-date.<\/span><\/p>\n

Driving the rally:<\/span> The banking crisis has raised market expectations that the Federal Reserve <\/span>will bring its tightening cycle to a premature end, helping to fuel a rally in speculative digital assets. Some analysts think investors are being drawn to crypto because of its separation from the traditional banking system, while others suggest that a drop in trading volumes following the collapse of market makers Silvergate Capital and Signature Bank is exaggerating price movements. (<\/span>Bloomberg<\/a><\/span> | <\/span>Reuters<\/a><\/span>)<\/span><\/p>\n

Also worth noting:<\/span><\/p>\n