(Bloomberg) by Mark Shenk – After showing some short-lived optimism, hedge funds resumed their retreat from the U.S. oil market, cutting bullish positions for the seventh time in eight weeks as prices dropped to the lowest since 2009. Money managers’ net-long position in West Texas Intermediate crude declined 11 percent in the week ended Aug. 11, U.S. Commodity Futures Trading Commission data show. Short positions climbed to the highest level since March, a signal speculators see prices continuing to fall. Funds curbed bullish bets on Brent in London to the lowest level since December, data from ICE Futures Europe showed. Futures markets this summer have plunged the most since trading began in 1984 as the U.S. enters a period in which refinery demand usually drops. A global surplus will last through 2016, the International Energy Agency said Aug. 12. The Organization of Petroleum Exporting Countries reported the day before that its output climbed last month to the highest level in more than three years. “The consensus view is that we’ve got further to fall,” Tim Evans, an energy analyst at Citi Futures Perspective in New York, said by phone Aug. 14. “The market is in what looks like a persistent supply-demand … continue reading
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Source: CTRM Center