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Energy Funds Could Reward Summer Short Sales

Alan Farley

The WTI crude oil futures contract has posted the highest high since the fourth quarter of 2014, underpinned by strong world demand and rising geopolitical tensions. Major energy funds have risen in tandem but are underperforming the underlying commodity by a wide margin, stuck well below their January 2018 highs. Three decades of spot market data highlight strongly seasonal crude oil performance, with higher prices expected in April and May followed by mixed summer action often dictated by the paths of hurricanes and their impact on Gulf oil rigs.