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OPEC Cap Talk Reignites Faith In Oil Prices

Gas pump

Investors are becoming more optimistic about oil every day—for the second week in a row money mangers are cutting bets that oil prices will fall.

Oil futures have shot up 23% in less than three weeks as OPEC members consider the possibility of freezing output, Bloomberg reports. And that’s happening just as signs indicate the global oil glut is finally beginning to drain.

Oil speculators cut their short positions in West Texas Intermediate by over 66,000 futures and options during the week ended Aug. 23—that’s the most since 2006 and a welcome sign for the industry. On top of that, Saudi Arabia says it’s open to the idea of an output freeze. [Bloomberg]