“The U.S. Oil Fund, the biggest exchange-traded fund that tracks oil prices, had the largest monthly inflow in one year in January on speculation that crude prices will rebound. West Texas Intermediate crude dropped $3.42 last month, posting third straight decline,” reports Moming Zhou for Bloomberg.
OPEC has kept up production to pressure high-cost rivals, such as the developing U.S. shale oil producers. The International Energy Agency expects it will take several years before OPEC can effectively price out high-cost producers. [Oil ETFs Face World-Record Supply Glut]
Oil’s ongoing weakness has prompted an array of big-name Wall Street banks to slash their price forecasts on crude. Morgan Stanley analysts, including Adam Longson, head of energy commodity research, argue that investors are putting too much emphasis on fundamental factors and are not paying attention to an appreciating U.S. dollar.
United States Oil Fund
