(Bloomberg) by Moming Zhou – Hedge funds reduced both bullish and bearish bets on oil for a fourth week as rising OPEC output was met with forecasts for a contraction in U.S. supply. Money managers trimmed their short wagers in West Texas Intermediate oil by 4.3 percent and long bets by 0.2 percent, leading to a 0.8 percent gain in the net-long position, U.S. Commodity Futures Trading Commission data for the seven days ended June 16 show. Net-long positions in Brent crude dropped for a sixth week. Trading in futures is falling as WTI swings in a $5 range, the narrowest in 19 months. The Organization of Petroleum Exporting Countries pumped the most oil last month since October 2012, while the U.S. government says output will start falling from this month. Investors are watching a June 30 deadline for Iran and six other nations to reach a nuclear deal that could lift oil sanctions and further swell a global supply glut. “It’s tough to get conviction one way or the other,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone June 19. “The narrow range can lead to diminished … continue reading
The post Speculators Retreat From Oil as OPEC Oversupply Crowds Out Shale appeared first on CTRM Center.
Source: CTRM Center