Market Overview

This Energy Fund Manager Is 'More Bullish' On Oil Than Ever Before

This Energy Fund Manager Is 'More Bullish' On Oil Than Ever Before

Investors who bought oil and oil-related stocks last week took a chance that an official OPEC meeting would result in an agreement which would limit the group's oil output.

According to a Bloomberg report, many analysts were skeptical of any deal being finalized during the OPEC meeting but behind the scenes money managers boosted their investments by the most since January.

Citing data from the Commodity Future Trading Commission, Bloomberg noted that investors and fund managers increased their combined long position in WTI crude by 24,131 future and options, or 8.1 percent, for the week ending September 27.

Related Link: OPEC Deal Indicates Saudi Arabia Is Abandoning Market Share Strategy

These investments paid off quickly as oil ended September with the biggest monthly gain since April.

Eric Nuttall, an energy fund manager with $130 million in assets under management, told Bloomberg that oil has gone through "the worst selloff" in history but now he is "more bullish than I was, and I was bullish before."

Despite an agreement being reached during the OPEC talks, there is some concerns it may not last.

Rob Haworth, a senior investment strategist that oversees $133 billion of assets at U.S. Bank Wealth Management, told Bloomberg that OPEC suffers from a "credibility problem."

Other investment experts, such as IHS Markit's Dan Yergin, aren't fully convinced and pointed out that the OPEC talks didn't end in any concrete plan, rather it was an "agreement to agree."


Related Articles (USO + UWTI)

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Posted-In: Bloomberg Eric Nuttall oil prices OPEC OPEC MeetingCommodities Markets Media Best of Benzinga

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