Oil speculators are growing more confident that prices are gaining ground on the back of rising demand and shrinking supply. U.S. gasoline demand is at a record high for this time of year, with the four-week consumption rate for gasoline above 9.3 million barrels per day (mb/d). That is important because the summer months typically see higher consumption than in the spring, so demand could continue to rise. (Click to enlarge) At the same time, production is falling. Weekly EIA data shows that output has declined to 8.95 mb/d, sharply down from a peak of nearly 9.7 mb/d in April 2015. (Click to enlarge) The converging of supply and demand has speculators increasing their bullish bets on crude oil. Net-long positions for the week ending on April 19 rose to their highest level since May 2015. Short positions fell for the week and long positions jumped. “Investors are looking […]