Hedge funds cut bullish oil bets to lowest since Aug. 2017

November 12th, 2018

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Category: Commentary

(Energy World) – New Delhi: Hedge funds and other money managers cut their bullish wagers on U.S. crude in the latest week to the lowest level since Aug. 29, 2017 as prices tumbled, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

The speculator group cut its combined futures and options position in New York and London by 41,211 contracts to 173,379 during the week ending Nov. 6. U.S. crude dropped 6 percent in the week to $62.21 a barrel as crude prices fell in each session. U.S. crude has fallen as the market is awash in supply.

During the period, U.S. crude output increased and the U.S. government granted temporary waivers that allow Iran’s largest customers to continue to buy its oil despite sanctions. As a result of the oversupplies, U.S. crude is currently on its longest losing streak since 1984.

During the week, speculators in Brent crude cut their net long positions by 47,064 contracts to 260,048 on the InterContinental Exchange (ICE). Natural gas speculators in four major NYMEX and ICE markets raised their net long position by 9,250 contracts to 268,564 in the week to Nov. 6.

 

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