Hedge fund bets on benchmark crude futures have fallen to their lowest in more than 13 years amid expectations of increased supply and weaker demand.
Money managers cut their combined Brent and WTI positions by 99,889 contracts to 139,242, according to data from ICE Futures Europe and the Commodity Futures Trading Commission on Sept. 3, the lowest since March 2011.
The deterioration in sentiment comes amid a sharp decline in prices in recent weeks, driven by concerns about demand in the United States and China and exacerbated by heavy selling by algorithmic funds. The prospect of a deal to restore Libyan output, as well as the prospect of OPEC+ increasing output next month, have added to the negative sentiment. Although the group has put its plan to restore output on hold, the decline has failed to lift prices.
