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Showing posts from August 21, 2016

Oil price surges as OPEC brings bulls back into market

Oil prices surged dramatically in the last two weeks thanks to OPEC freeze talk, but there's little expectation the cartel will act, especially now that crude is trading 24 percent higher just on hot air. Oil, up nearly 9 percent this week alone, has raced higher since West Texas Intermediate crude futures dipped below $40 per barrel in early August. In just 16 days, oil futures are approaching $50 - settling at $48.52 per barrel Friday. While analysts say oil could back off its highs, there's a more bullish tone to the market. Investors are building new long positions, offsetting a major short position, which has been whittled away from record levels by short covering. "These elevated prices may last a bit just because the market has given so much reward to the rhetoric right now," said John Kilduff of Again Capital. OPEC on Aug. 8 said it would meet on the sidelines of an energy conference in Algiers in late September, which will also be attended by non-OP