Hedge funds scaled back their bullish bets on US crude to the lowest levels since early April as mounting uncertainty over trade negotiations and a looming 1 August tariff deadline raised concerns over future energy demand, according to a report by Bloomberg.
The report cites Commodity Futures Trading Commission (CFTC) data for the week ending 22 July, as showing that money managers reduced their net long positions on West Texas Intermediate (WTI) crude by 10,018 lots, bringing the total to 86,088 — the smallest bullish position since 8 April.
The decline reflects market unease as President Donald Trump’s hardline stance in trade talks with major partners continues to stoke fears of a broader economic slowdown, potentially dampening global oil consumption. Simultaneously, US crude inventories at Cushing, Oklahoma rose for the third consecutive week, adding to bearish sentiment as summer driving demand begins to wane.
Speculators also trimmed their bullish positions on Brent crude by 11,352 lots, down to 227,393, according to ICE Futures Europe data. Meanwhile, hedge funds reduced their net long positions in US diesel by 1,659 lots to 38,945, largely due to an increase in short positions, despite long-only holdings climbing slightly to 54,053, the highest since February – a sign of ongoing tightness in global diesel markets.
