The recent rise in oil and gas prices could be threatened as a result of bullish hedge fund positions that have been building since 2014 . Hedge funds are taking enormous long positions on oil and gas and expect prices to rise further in 2015 . However , these positions will put downward pressure on prices as and when the funds decide to take profits . In recent years , when there has been an increase in the number of big long positions in oil and gas futures and options , it has been followed by a sharp drop in the oil price .
The recent rise in oil and gas prices could be threatened as a result of bullish hedge fund positions that have been building since 2014. Hedge funds are running enormous long positions on oil and gas and expect prices to rise further in 2017. However, these positions will put downward pressure on prices as and when the funds decide to take profits. In recent years, when there has been an increase in the number of big long positions in oil and gas futures and options, it has been followed by a sharp drop in the oil price.