Bets on long-term gains increase

New York: Hedge-fund managers and other large speculators increased their net-long positions, or bets that oil prices will rise, for a fourth week, according to the US Commodity Futures Trading Commission (CFTC).

The wagers that prices will climb outnumbered those that prices will fall by 109,314 contracts in the week ended March 9, according to the commission's Commitments of Traders report Friday.

"The best buying came again from managed money covering shorts and getting long," said Peter Beutel, president of trading adviser Cameron Hanover in New Canaan, Connecticut. "The economy looking stronger and equities markets moving higher are the factors pushing prices higher."

Open interest rose 50,806 contracts to 1.3 million during the period, according to the CFTC report.

Oil for April delivery rose $1.81, or 2.3 per cent, to $81.49 a barrel for the week ended March 9 on the New York Mercantile Exchange.

Speculators increased their net-long positions on heating oil by 963 contracts to 24,798.

Net-short positions in natural gas increased by 3,902 contracts to 174,569.