Hedge Funds Energy Markets
Hedge Funds Reducing Bullish Oil Future Bets
Speculative net-long positions, or wagers that prices will increase, in crude futures declined 30 percent to 17,457 contracts on the New York Mercantile Exchange in the week ended June 8, the lowest level since July, according to the Commodity Futures Trading Commission’s Commitments of Traders Report released on June 11. Bets on gains have dropped 87 percent since reaching a record 135,669 in January.
Traders retreated from bets on rising oil prices as the euro depreciated to a four-year low on concern efforts to cut budgets in Europe because of the debt crisis will curb the global rebound. U.S. retail sales unexpectedly fell in May for the first time in eight months, the Commerce Department said June 11. Oil prices in the U.S., the world’s biggest consumer of the fuel, have slipped 15 percent from a 20-month high in May. Source