• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Does Toyota Know Something That We Don’t?
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 16 hours America should go after China but it should be done in a wise way.
  • 6 days China is using Chinese Names of Cities on their Border with Russia.
  • 8 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 8 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 8 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 7 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 8 days Putin and Xi Bet on the Global South
  • 8 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 9 days United States LNG Exports Reach Third Place
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Bounces Back After Hedge Fund Selling Spree

Hedge funds have already left behind the attacks on Saudi oil infrastructure in mid-September and have been net sellers of petroleum futures in the past two weeks as gloomy outlooks on the global economy took center stage in the oil market.

Money managers sold the equivalent of 64 million barrels of WTI Crude another 17 million barrels of Brent Crude futures positions in the most recent reporting week to October 1, according to data from regulators and exchanges compiled by Reuters market analyst John Kemp.

The hedge funds’ overall net long position—the difference between bullish and bearish bets—of 532 million barrels in the six most important oil-linked futures contracts is now back essentially the same as it was in early September, before the September 14 attacks on critical Saudi oil facilities, which took 5.7 million bpd—or 5 percent of global supply—offline.

Despite the unprecedented attack, however, portfolio managers have started to fret over mounting signs of slowing economic and oil demand growth rather than on the possibility of another major disruption to global oil supply.

Oil prices are now lower than they were just before the attacks on critical Saudi oil facilities. Hedge funds and other money managers have winded down bullish bets on Brent and WTI over the past two weeks, reversing a build-up in the net long position that had accumulated in the two weeks prior to the attacks in Saudi Arabia.  

In the week to October 1, the bullish bets on WTI and Brent combined dropped to their lowest in eight months, according to exchanges data compiled by Bloomberg. The end of the driving season in the U.S. is also eroding bullish sentiment about demand, according to Bloomberg.

“A week of negative macro data last week is unlikely to have helped sentiment, and in the current environment, it is clearly going to take a significant amount to shift sentiment- the attack on Saudi Arabia in mid-September clearly demonstrated this,” Warren Patterson, ING’s Head of Commodities Strategy and Senior Commodities Strategist Wenyu Yao, said on Monday.

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News