Hedge funds turned internet bearish on Brent crude for the primary time on document as considerations about an oversupply of oil hammer futures costs.
Cash managers’ brief positions outnumbered lengthy bets by 12,680 tons within the week ended Sept. 10, the primary time that’s occurred in ICE Futures Europe knowledge going again to January 2011. Hedge funds remained internet bullish on WTI, although that place was the smallest since February. Cash managers shrank their internet bullish Nymex WTI place to 105,024 tons, weekly CFTC knowledge on futures and choices present.
Traders are more and more involved about an oversupply of crude subsequent yr as non-OPEC international locations increase output and demand from China and the US — the world’s prime oil customers — seems to be faltering.
The gloomy sentiment rippled throughout refined-products markets as effectively. Cash managers additionally turned essentially the most bearish on diesel in virtually 9 years, deepening their net-short place to 38,609 tons. Equally, gasoline’s net-long place was the least bullish in additional than seven years, dwindling to simply 5,193 tons. Cash managers additionally boosted their bearish gasoil bets to a document net-short place of 64,461 tons.
Buying and selling in oil choices and heavy promoting from algorithm-driven merchants helped drive costs to the lowest in additional than two years earlier this week. As bearish bets have surged and the commerce received crowded, a few of these positions had been unwound later this week, resulting in a tepid value restoration.