Investors are starting to see a response to OPEC's promise to cut production. Oil cuts are not only being seen, but are now being reflected by the reduction in the amount of tanker truck traffic. Money managers are boosting their bets on a price increase and wagers decline and the market is responding.
In this market, we will continue to see a climb in U.S. production. We have already seen highs since April, according to the Energy Information Administration (EIA). The money managers net-long position in WTI rose the most since 2006.
The market is focused on OPEC and their cuts right now. As we see rising production in U.S. shale, investor sentiments will take a large swing.
To read the full January 30, 2017 article by Mark Shenk with Bloomberg click the button below.