Hedge funds dump crude oil as Iran deal may prolong glut

Houston

SPECULATORS cut bullish bets on oil to the lowest level since March because an agreement over Iran's nuclear programme threatens to prolong a global supply glut.

Money managers reduced their net-long position in West Texas Intermediate (WTI) crude by 15 per cent in the week ended July 14, US Commodity Futures Trading Commission (CFTC) data shows. Longs dropped 7.9 per cent and short wagers rose 4.2 per cent.

Iran, holder of the fourth-biggest crude reserves, may be able to increase exports as soon as December if it complies with the terms of its nuclear accord with world powers. That would add to record output from Saudi Arabia and Iraq and come at a time when the Organization of …