Hedge funds have slashed their bullish bets on crude oil to the lowest level seen in more than 13 years, amid concerns of growing supply and weakening demand, according to a report by Bloomberg.
Money managers reduced their combined net-long positions on Brent and West Texas Intermediate (WTI) oil by 99,889 lots, leaving a total of 139,242 lots as of the week ending 3 September, according to data from ICE Futures Europe and the Commodity Futures Trading Commission (CFTC). This is the lowest level recorded since March 2011.
The bearish outlook comes as oil prices have plunged in recent weeks due to concerns over demand in major economies like the US and China, as well as significant selling by algorithmic funds. Talks of a potential deal to restore Libya’s oil production and the possibility of OPEC+ increasing output next month have added additional pressure to the market were, although OPEC+ has since paused plans to raise production.
