LONDON: The Organisation of Petroleum Exporting Countries’ (Opec) production cuts have already turned oil speculators the most bullish in a decade. The supply curbs are boosting short-term oil prices, pushing some higher than later-dated contracts for the first time in two years. Since 2014, short-term crude traded at a discount because of a global surplus. But for financial investors in crude futures, holding onto a position meant buying ever-costlier contracts that often wiped out returns. “It’s highly dependent on continued compliance from Opec over an extended period.”Yet initial signs of Opec compliance are encouraging.

Source: The Star February 02, 2017 21:56 UTC