As hedge funds bet against oil, traders see another story

London

HEDGE funds are still holding large bearish bets against oil and Opec, yet out in the real world traders and refiners buying and selling actual barrels say it's starting to look somewhat more bullish.

"The market is looking a bit better," Ian Taylor, chief executive of Vitol Group, the world's largest oil trader, said. "Physical differentials are improving across the world."

Differentials are an important indicator of the state of the market. They reflect the price of each type of crude compared with a benchmark, often Brent or West Texa…