Hedge funds and other money managers raised their net long position in the six most important futures and options contracts linked to petroleum prices by just 6 million barrels in the seven days to July 10.
Net length increased for the third week running but the rise was much smaller than in the week ending July 3 (+47 million barrels) or June 26 (+36 million) indicating the recent wave of position-building was largely complete.
Portfolio managers cut net long positions in Brent (-10 million barrels) while adding them in NYMEX and ICE WTI (+1 million), U.S. gasoline (+6 million), U.S. heating oil (+5 million) and European gasoil (+4 million).
While crude contracts continued to come under selling pressure, funds started or continued to add slightly to bullish positions in refined fuels (https://tmsnrt.rs/2KZZ67a).
But Brent positions have declined in 10 out of the last 13 weeks, and with no new buying in WTI, the gentle downward pressure on prices and calendar spreads finally turned into a torrent just one day later.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)