Market Factors: Oil bears are wrong

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Why the market has become too bearish on crude

Today we’ll discuss why investors might want to hold their fingers above the buy button on oil stocks in early 2025, take a look at some venture capital funds that are bleeding Main Street firms into bankruptcy, and report on how soccer’s governing body keeps shooting itself in the foot.

The strong correlation between global GDP growth and crude demand is still in place despite solar and wind power growth. BofA economists expects global economic growth to accelerate to 3.3 per cent in 2025 and Mr. Blanch expects oil demand to follow suit. Hedge fund investors are positioned very bearishly on crude. The Commodity Futures Trading Commission data on speculative oil futures indicates the lowest optimism since at least 2011. In a separate BofA research report, equity-linked analyst Chintan Kotecha identified models suggesting that trend following, algorithm-based funds like commodity trading advisors are over halfway to maximum short positions on crude.Mr.

There is nothing illegal about what might be described as balance sheet plundering if one was in an uncharitable mood. It is definitely a clear case of how financialization of the economy works against Main Street businesses.Reinildo Mandava of Atletico de Madrid is tackled by Oihan Sancet of Athletic Club during the LaLiga match between Athletic Club and Atletico de Madrid at Estadio de San Mames on August 31, 2024 in Bilbao, Spain..

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