Oil Has Become The Hottest Commodity On Wall Street – MENAFN.COM

Oil Has Become The Hottest Commodity On Wall Street – MENAFN.COM

Crude oil has been having a great 2021 so far"”a very different situation to last year's when the pandemic devastated demand for all commodities fueling a price rout that lasted well into 2020. Now, commodities are back with a vengeance, and nowhere is this vengeance clearer than in oil. Crude has become the hottest commodity for traders in the past few weeks as surging demand has topped all expectations, sparking a run on oil futures. According to a recent Wall Street Journal report, in mid-June, the ratio of bullish to bearish bets on oil in New York stood at a staggering 23 to 1. This compares with a ratio of 6 to 1 at the beginning of the year. This is the speculative component of the price rally, and it is certainly a big component. But the fundamental component is a big one, too. OPEC+ stunned everyone earlier this month when it failed to reach an agreement on how to proceed with its production control beyond the current month. The UAE, a dissenter who had already criticized some aspects of the production cut deal, this time really dug its heels in and refused to make any concessions until concessions were