Oil speculators focused on glut miss surge as bombs hit Yemen

New York

SPECULATORS were the least bullish on crude in two years before prices surged as Saudi Arabia and its allies bombed rebels in Yemen, threatening supply disruptions in the largest oil-producing region.

Hedge funds and other money managers cut their net-long position in West Texas Intermediate (WTI) crude by 3.8 per cent in the seven days ended March 24, US Commodity Futures Trading Commission data show. Futures jumped more than 8 per cent in the next two days before dropping 5 per cent on Friday as shipping groups said there were no disruptions for now.

Yemen lies on one side of Bab el-Mandeb, the fourth-busiest oil and fuel shipping bottleneck in the world by volume. Saudi Arabia and its allies in the fight against the Shiite rebels are among the biggest energy exporter…