Critical information ahead of the U.S. market’s open
by Barbara Kollmeyer
There’s a distinct whiff of optimism in the air where crude prices are concerned — something that has trickled down to stocks.
There was good and bad news in Wednesday’s U.S. crude production data. First the good: Oil production fell for a sixth straight week, and is now at the lowest since Nov. 2014, notes Commerzbank. But the bad: Inventories rose 10.4 million barrels, to a new record high.
[…] “The fact that the market is taking such longer-term aspects into account rather than looking solely at near-term inventory trends suggests that sentiment is shifting on the oil market,” says Commerzbank.
Count hedge funds as among those licking their chops and loading up on energy companies, on a bet that happy days will be here soon for oil, reported The Wall Street Journal.