NEW YORK (Reuters) – Some U.S. fund managers are attempting what seems like an impossible task: making bets on the stocks and bonds of energy companies at a time when oil futures have sunk to historic lows and a swelling global glut shows no sign of letting up.
FILE PHOTO: Natural gas flares are seen at an oil pump site outside of Williston, North Dakota March 11, 2013. REUTERS/Shannon Stapleton/File Photo
On Monday, traders holding the expiring front-month May contract for U.S. crude had to pay nearly $40 per barrel to unload oil as they scrambled to avoid having to take delivery.
With supply looking like it will far exceed demand for weeks, oil contracts for June on Tuesday were at two-decade lows, with global benchmark Brent down 24%, to settle at $19.33 a barrel and U.S. crude for June down 43% to $11.57. [O/R]
The United States Oil Fund ETF was down more than 20% on Monday.
Energy stocks in the S&P 500 are down nearly 45% for the year to date, more than triple the 15% decline…