Hedge funds slash oil longs to 2008 lows as sanction risk eases, supply fears grow | investingLive

Hedge funds cut their bullish bets on crude oil to the lowest level in nearly 17 years, as the fading risk of fresh sanctions on Russian crude shifted focus back to oversupply concerns.

CFTC data, reported via Bloomberg (gated) showed money managers’ net-long position in West Texas Intermediate futures fell by 19,578 lots to just 29,686 in the week to Tuesday — the smallest since October 2008.

With geopolitical tensions easing and several agencies forecasting oil supply to outstrip demand later this year, sentiment turned bearish. The U.S. push for talks to end the war in Ukraine further reduced expectations of new sanctions on Russian crude, despite little real progress toward peace.