Hedge Funds Gasoline
Hedge Funds Increasing Long Bets on Gasoline
“It’s a seasonal play. They’re thinking let’s load up ahead of the summer driving season,” said Tim Evans, an energy analyst at Citi Futures Perspective in New York. “When I combine this record long position in gasoline, and I look at the Energy Department numbers on surplus inventories, I see a lot of downside potential.”
Gasoline supplies rose 1.26 million barrels to 224.9 million in the week ended April 30, the Energy Department reported this week in Washington. Stocks were 7.6 percent higher than the five-year average. Crude oil inventories increased to the highest level since June.
Gasoline for June delivery fell 0.62 cent to $2.3222 a gallon in the week ended May 4 on the New York Mercantile Exchange. Gasoline has fallen 8.5 percent since then to $2.1251. Source