Bullish oil bets gain on signs Opec cuts will beat US boom

New York

OPEC (Organization of the Petroleum Exporting Countries) is finally making some headway in its race against the tide of surging US supplies, and speculators are giving the group greater credence.

Hedge funds boosted bets on higher West Texas Intermediate (WTI) crude prices a second week as futures topped US$53 a barrel for the first time in a month, US Commodity Futures Trading Commission (CFTC) data shows. While more Opec members are seen ready to extend output cuts, US crude stockpiles dropped from a record. Fuel supplies are shrinking week after week at a time refineries are stepping up their crude processing ahead of the summer driving season.