Oil Traders Overstretch Futures Market

Oil traders have been gobbling up futures in the six most traded crude and fuel contracts on that market for four weeks now. It's easy to see why: it was enough for Saudi Arabia and Russia to announce an extension of their 1.3-million-bpd combined supply cut, and traders stopped obsessing over demand in China. By now, however, traders have placed so many bullish bets that, according to Reuters' market analyst John Kemp, oil prices are due for a correction. In his latest column on oil buying among institutional traders, Kemp pointed out that…