Purchases over the three most recent weeks have totalled 63 million barrels, according to position records published by ICE Futures Europe and the U.S. Commodity Futures Trading Commission.
Portfolio managers have reversed about half of their net sales in late March and early April, when there were concerns about frothy oil prices and resurgent coronavirus cases.
The buying is accelerating, albeit gradually, suggesting traders are growing more confident that global economic activity or petroleum consumption will not suffer a relapse despite new waves of coronavirus infections in some countries.
The most recent week was dominated by purchases of NYMEX and ICE WTI (+15 million barrels) and European gas oil (+11 million), with insignificant changes in the other three contracts.
OPEC+ output restraint despite a strong recovery in oil consumption continues to underpin bullish sentiment that has also been bolstered by slower increases in the number of rigs drilling for oil in the United States.
Coronavirus infections in India and passenger aviation bans are restraining such...read more...