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Hedge funds dump bullish oil positions

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Hedge funds and other money managers continued selling petroleum positions for the fourth consecutive week during the seven days ending 6 December as the price cap on Russian oil came into effect, according to a report be Reuters.

Hedge funds and other money managers continued selling petroleum positions for the fourth consecutive week during the seven days ending 6 December as the price cap on Russian oil came into effect, according to a report be Reuters.

The report cites position records published by ICE Futures Europe and the US Commodity Futures Trading Commission as revealing that funds sold off the equivalent of 30 million barrels in the six most important petroleum-related futures and options contracts, taking total fund sales over the four most recent weeks to 221 million barrels.

The combined position has fallen to 358 million barrels (12th percentile for all weeks since 2013) from 579 million barrels (47th percentile) on 8 November,

Fund managers sold NYMEX and ICE WTI (-5 million barrels), Brent (-4 million), US gasoline (-5 million), US diesel (-11 million) and European gas oil (-5 million).

The net position in Brent has now fallen to the lowest level since the first and second waves of the coronavirus epidemic at just 95 million barrels (5th percentile).

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