Hedge fund bets on Brent down 80% since June

[LONDON] Hedge fund bets on Brent crude have fallen to a two-year low and are down more than 80 per cent since hitting a record level in June, data from ICE showed on Monday, illustrating a sharp reversal by money managers as oil has slumped.

Brent has fallen from more than US$115 a barrel in June to a two-year low just above US$95 a barrel last week, as violence in Iraq and Syria has had a limited impact on supplies and as output from Libya has returned.

Over the same time period, hedge funds have slashed their bets on Brent from a record high equivalent to more than 240 million barrels of oil to less than 44 million as of Sept 23, in another sign oil prices may remain under pressure.