Hedge funds, money managers cut bullish bets on US crude
New York
HEDGE funds and money managers cut bullish wagers on US crude oil for the first time in four weeks, data showed on Friday, as prices dropped amid a surge in US inventories and an output cut by top producers showed little signs of alleviating a glut.
The speculator group cut its combined futures and options position in two major NYMEX and ICE markets by 27,112 contracts to 215,096 in the week to June 13, US Commodity Futures Trading Commission (CFTC) data showed.
The cut came even as gross long positions among money managers on the New York Mercantile Exchange ticked up slightly, because short positions rose sharply, the data showed.
US oil futures on the NYMEX dipped by more than 3.5 per cent during that period and averaged US$46.32 per barrel.
Prices had tumbled about 5 per cent after data showed US stocks of crude oil and gasoline surprisingly rose as refinery runs declined and exports fell.
Crude markets have been under pressure despite a pledge by the world's largest exporters, led by the Organization of Petroleum Exporting Countries, to extend a cut in production of 1.8 million barrels per day into next year.
Saudi Arabia's crude exports are expected to fall below seven million barrels per day this summer.
However, the cuts have done little to dent swollen inventories in many other parts of the world. Traders are increasingly storing oil in ageing supertankers in South-east Asia as they grapple with the supply overhang.
In the United States, where shale production has remained resilient, US energy companies added oil rigs for a record 22nd week in a row, energy services company Baker Hughes said on Friday.
OPEC members Nigeria and Libya, which are exempt from the production cut deal, have increased exports as they bounce back from supply disruptions caused by protests, rebel activity and mismanagement.
Among refined products, speculators turned bearish on gasoline, with a combined futures and options net short position of 12,818 contracts in the week to June 13.
In ultra low sulfur diesel, traders took their bearish bets to the biggest since early March 2016 with a net short position of 24,578 contracts. REUTERS
