VelocityShares Credit Suisse 3X Long Crude ETN (UWTIF)

[sludgehound]

COMMODITIES: Oil Recovers on Sentiment Supply Situation Could Turnaround

09:44 AM EDT, 09/21/2015 (MT Newswires) -- Oil prices are higher Monday morning, staging a recovery after falling sharply on Friday and posting their biggest one-day drop in three-weeks.
Different data, suggesting that the market oversupply for oil may be hitting a turning point is contributing to the upside. Last Friday Baker Hughes reported a decline in the number of active rigs in the U.S., the third-straight week that rig count fell. Separately, Goldman Sachs said in a report that rig data pointed to a 250,000 barrel per day decline in U.S. oil production between Q2 and Q4 2015.
Adding to oil's upside was a report from Wood Mackenzie that showed US$1.5 trillion worth of planned production in North America was uneconomic with oil below US$50 a barrel. According to an article in the Wall Street Journal citing this report, these projects are unlikely to go ahead, limiting future oil supply.
Meanwhile, Money managers are, according to the latest Commodities Futures Trading Commission data, turning bullish on West Texas Intermediate oil, but turned bearish on Brent crude. Money managers' net-long positions (bets on higher prices) in WTI rose by 14,821 contracts to 147,678 futures and options in the week ended Sept. 15. They are the most bullish on WTI in 10-weeks. In contrast, traders cut their bullish positions in Brent crude by the most in a month.
At last glance, WTI futures were up 2.8% at US$45.92 a barrel.
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