"Hedge Funds Bet Big on Oil Markets, Fueling Bullish Sentiment"

Hedge funds are returning to the oil market with their most bullish wagers in over a year, following the extension of production cuts by Saudi Arabia and Russia, which have caused crude prices to surge 30% since mid-June. This comes after legendary oil trader Pierre Andurand suffered significant losses earlier this year due to incorrect predictions about oil prices. Despite weak global demand and sub-par recovery by the Chinese economy, oil demand has held up better than expected, particularly in gasoline and jet fuel. The U.S. shale sector is also expected to remain healthy as production costs have started to decline. However, India's slowing oil demand growth may act as a drag on oil prices. Overall, while the oil market remains tight and inventory tightening is expected to drive prices in the coming months, there is still a possibility of macro-driven volatility.