Hedge Funds Unexpectedly Set The Stage For An Oil Rally

As market participants continue to weigh two decisively bearish factors for oil prices—slowing oil demand growth and soaring non-OPEC oil supply—two potentially bullish drivers have made money managers return to buying oil in recent weeks. The possibility of a Fed rate cut as soon as next week and the flaring-up of the Iran-West tensions in the Middle East and the world’s most important oil shipping lane, the Strait of Hormuz, resulted in hedge funds buying petroleum futures at the fastest pace in nearly a year in the most recent…