New York

HEDGE funds turned the most bullish on oil in three months, growing more confident that producers are pulling back fast enough to deflate a supply glut.

With US oil floating near US$50 a barrel again after almost three months in the US$40s, money managers boosted their net-long position in West Texas Intermediate (WTI) crude by 12 per cent in the week ended Oct 6, according to data from the Commodity Futures Trading Commission (CFTC). Longs, or bets that prices will rise, climbed to the highest level in 14 weeks, while shorts declined.