Oil bulls double down on rally with highest bets since Oct

Hedge funds are betting that rising tensions around the globe will keep fuelling oil’s rebound this year.

Money managers boosted optimistic wagers on West Texas Intermediate crude to the highest since October in the week ended April 16, according to government data released on Friday. Total long and short positions swelled to the most in six months, a sign that the rally is luring back investors after 2018’s late-year crash. The US benchmark has jumped about 40 per cent this year. OilNSE -1.03 % has wavered since nearing $65 a barrel in New York for the first time in five months on April 9. While Opec output cuts have pushed prices higher, it’s unclear how long the cartel and its partners will sustain the curbs. The Trump administration, meanwhile, faces a pivotal decision on Iranian sanctions, and conflicts in Libya, Algeria and Venezuela remain wildcards.