New reports confirm that hedge funds have dramatically reduced their bullish positions on crude oil, hitting levels not seen since October 2008. As of the week ending Tuesday, the net-long position in West Texas Intermediate (WTI) futures plummeted by 19,578 lots, bringing the total to just 29,686 contracts. This marks the lowest level in nearly 17 years, according to data from the Commodity Futures Trading Commission (CFTC) reported by Bloomberg.
The sharp decline in bullish sentiment comes as the risk of new sanctions on Russian oil fades, shifting investor focus back to growing concerns of oversupply. With geopolitical tensions easing and several agencies predicting that oil supply will exceed demand later this year, the outlook for crude has soured significantly.
Officials in the U.S. are pushing for dialogue to resolve the ongoing war in Ukraine, which has further diminished expectations of imminent sanctions against Russian crude. Despite this, actual progress toward peace remains limited.
Market analysts warn that the current trajectory could lead to significant implications for oil prices in the near future. As hedge funds re-evaluate their positions amid these changing dynamics, the energy sector is poised for volatility.
Watch for potential updates as traders adjust their strategies in response to the evolving situation. The impact of these developments is being closely monitored by investors worldwide, highlighting the ongoing uncertainty in the oil market.
Stay tuned for more updates on this developing story.
