Hedge funds and other money managers sold the equivalent of 64 million barrels in the six most important petroleum-related futures and options contracts in the seven days ending June 27.
Essentially all the sales were concentrated in crude contracts split evenly between Brent (-31 million barrels) and NYMEX and ICE WTI (-33 million barrels).
Fund managers had accumulated 136 million barrels of gross short positions in NYMEX WTI, the most since 2017.
The slump in WTI positions is likely being intensified by contract changes which have seen WTI crude grades added to the Brent futures contract.
From a positioning perspective, extreme pessimism towards crude prices and lopsided positions are creating potential for an explosive rally in future.
Persons:
Alexander Manzyuk, Brent, John Kemp, David Evans
Organizations:
REUTERS, OPEC ⁺, ICE, ICE WTI, Fund, Global, Thomson, Reuters
Locations:
Republic of Tatarstan, Russia, Saudi Arabia, Brent, NYMEX WTI, North America, Europe, China, U.S, Iran, Venezuela, distillates