Hedge funds elevated their bearish bets towards gasoline costs to the best in seven years after this yr’s summer time driving season has delivered solely tepid demand to this point.
Cash managers’ short-only positions in gasoline rose by 5,093 heaps to 36,729 heaps within the week ended July 2, in response to the Commodity Futures Buying and selling Fee. That’s the best since July 2017.
Consumption of the gasoline through the North American summer time driving season has been lackluster. Gasoline inventories expanded by probably the most since January, in response to the Power Data Administration’s June 26 report. Gas demand on a four-week foundation fell for the primary time in two months over the interval.
Information for the July 4 vacation have but to be launched. The American Vehicle Affiliation predicted that about 71 million People would journey over Independence Day.
Regardless of the sluggish forecast for gasoline, crude rallied over the week ending July 2, hitting two-month highs on dangers from Hurricane Beryl and rising tensions within the Center East and Europe. Cash managers elevated their web bullish place on West Texas Intermediate by 13,265 heaps to 249,081, the most important since October.