Oil prices rose
on Monday as investors showed record confidence in prices rising
further, though gains were capped by the prospect of faster growth in
U.S. oil production.
Brent
crude oil LCOc1 rose 55 cents to $56.54 a barrel by 1053 GMT, while
U.S. West Texas Intermediate CLc1 added 39 cents to $54.38.
Money managers raised their bullish U.S. crude futures and options positions in the week to Feb. 21 to the highest on record, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
"Oil prices are being supported by the ongoing buying interest shown by speculative financial investors, who for the first time expanded their net long positions in WTI to more than 400,000 contracts," Commerzbank analyst Carsten Fritsch said in a note.
Speculators also raised their bets on a rally in Brent crude futures to a record high in the week to Feb. 14, with fresh data expected to be released later on Monday.
Among the risks is the level of compliance to the deal between the Organization of the Petroleum Exporting Countries (OPEC) and other producers to bring down oil output by about 1.8 million barrels per day (bpd).
OPEC's record compliance with the deal has surprised the market, and the biggest laggards, the United Arab Emirates and Iraq, have pledged to catch up with their targets.
Money managers raised their bullish U.S. crude futures and options positions in the week to Feb. 21 to the highest on record, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
"Oil prices are being supported by the ongoing buying interest shown by speculative financial investors, who for the first time expanded their net long positions in WTI to more than 400,000 contracts," Commerzbank analyst Carsten Fritsch said in a note.
Speculators also raised their bets on a rally in Brent crude futures to a record high in the week to Feb. 14, with fresh data expected to be released later on Monday.
Among the risks is the level of compliance to the deal between the Organization of the Petroleum Exporting Countries (OPEC) and other producers to bring down oil output by about 1.8 million barrels per day (bpd).
OPEC's record compliance with the deal has surprised the market, and the biggest laggards, the United Arab Emirates and Iraq, have pledged to catch up with their targets.
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