Hedge funds slash bullish oil bets as concerns of a glut grow

[NEW YORK] Hedge funds cut their bullish stance on US oil to the lowest since mid-April as rising US crude inventories and Organization of the Petroleum Exporting Countries+ (Opec+’s) production increases drive bearish sentiment. 

Money managers decreased their net-long position on West Texas Intermediate by 9,014 lots to 78,826 lots in the week through Tuesday, data from the Commodity Futures Trading Commission show. That’s the smallest net-long position since US President Donald Trump announced tariffs on major trade partners in early April.

Opec+ agreed over the weekend to sharply hike production again in September, completing the reversal of a 2.2 million-barrel cutback made in 2023. The decision came on the heels of US economic data that showed stubborn inflation and soft consumer spending, signalling the risk of broader economic downturn. US crude inventories rose 7.7 million barrels in data released Jul 30, the last such report before the positioning figures were finalised.  

Speculators decreased their net-long position on Brent crude by 20,375 lots to 240,977 lots, weekly ICE Futures Europe data on futures and options show. BLOOMBERG