Hedge Funds Turn Against OPEC After Oil Gains Slip Away — “Basically, their mistake is to think they can fix prices—they cannot anymore.”

Peace and Freedom

Traders tally up losses as cartel falls short in its effort to boost prices and reduce global glut

OPEC Secretary-General Mohammad Barkindo speaks with journalists in April in Abu Dhabi.
OPEC Secretary-General Mohammad Barkindo speaks with journalists in April in Abu Dhabi.PHOTO: NEZAR BALOUT/AGENCE FRANCE-PRESSE/GETTY IMAGES

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May 17, 2017 5:30 a.m. ET

OPEC is trying harder than ever to woo big investors, but the cartel is finding that falling oil prices are making that a tough sell.

Dozens of hedge-fund managers and oil traders attended a series of closed-door meetings in recent months with OPEC leaders—the first of their kind, according to Ed Morse, Citigroup’s global head of commodities research, who helped organize some of the events.

Cartel officials made the case for how OPEC supply cuts would reduce the global glut and boost crude prices, according to people familiar with the meetings. Instead, oil prices are…

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