Hedge Funds Increase Bearish Oil Bets to Highest Level in Five Months
JH Kim
Summary
- Hedge funds raised short positions betting on falling crude prices to the highest level in about five months.
- Market participants see easing tensions between the U.S. and Iran, rising Iranian oil exports, and the possibility of normalized shipping through the Strait of Hormuz as factors that could increase global oil supply.
- As a result, expectations are growing that crude prices could face downward pressure, while bearish bets are also increasing in the diesel market on concerns about rising supply.
Forecast Trend Report by Period
Hedge funds have raised short positions betting on falling crude prices to the highest level in about five months.
Walter Bloomberg reported on June 23 that market participants see easing tensions between the U.S. and Iran, rising Iranian oil exports and the possibility of normalized shipping through the Strait of Hormuz as factors that could increase global oil supply.
That has strengthened expectations that crude prices could face downward pressure.
Bearish bets also increased in the diesel market, where concerns about rising supply appear to be having a bigger impact than the demand outlook.
JH Kim
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