Hedge Funds Boost Bearish Oil Bets to Highest in Five Months
JH Kim
Summary
- Hedge funds increased short positions betting on lower oil prices to the highest level in about five months.
- Market participants see easing tensions between the US and Iran, rising Iranian oil exports and the prospect of normalized shipping through the Strait of Hormuz as factors that could increase global oil supply.
- As a result, expectations are growing that oil prices could come under downward pressure, and bearish bets are also rising in the diesel market on concerns about increasing supply.
Forecast Trend Report by Period
Hedge funds have increased short positions betting on lower crude prices to the highest level in about five months.
Walter Bloomberg reported on June 23 that market participants see easing tensions between the US and Iran, rising Iranian oil exports, and the prospect of normalized shipping through the Strait of Hormuz as factors that could increase global crude supply.
That is strengthening expectations that oil prices could come under downward pressure.
Bearish bets also increased in the diesel market. Concerns about rising supply appear to be outweighing the demand outlook.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
