Hedge funds have slashed bullish wagers on US crude to their weakest level in nearly two decades, reflecting growing concern over a looming supply glut and heightened policy uncertainty, according to a report by Bloomberg citing data from then Commodity Futures Trading Commission (CFTC).
According to the CFTC, money managers reduced net-long positions in West Texas Intermediate by 5,461 contracts in the week ending 26 August, bringing total longs down to 24,225 lots—the lowest since January 2007. At the same time, short-only bets climbed to a 20-month high.
The pullback marks a fourth consecutive weekly decline in bullish sentiment as traders brace for oversupply later this year and factor in the drag from the ongoing US-led trade war. President Trump’s failure to follow through on threats to tighten sanctions on Russian oil exports has also prompted funds to unwind bets on tighter supply, while his escalating battle with the Federal Reserve has dampened risk appetite.
In contrast, positioning in Brent crude has diverged, with ICE Futures Europe data showing hedge funds boosting long-only bets to a three-week high, suggesting global crude sentiment remains more resilient than in the US market.
