Hedge funds increased their bearish bets on gasoline prices to their highest level in seven years after this yr’s summer driving season has thus far resulted in muted demand.
According to the Commodity Futures Trading Commission, asset managers’ short-only positions in gasoline rose by 5,093 lots to 36,729 lots within the week ended July 2, the very best level since July 2017.
Fuel consumption in the course of the North American summer driving season was moderate. Gasoline inventories rose essentially the most since January, in accordance with the Energy Information Administration’s June 26 report. Fuel demand on a four-week basis fell for the primary time in two months during that period.
Dates for the July 4th holiday have yet to be released. The American Automobile Association predicted that about 71 million Americans would travel on Independence Day.
Despite the weak forecast for fuel, crude oil prices recovered within the week ending July 2, reaching Two-month highs as a consequence of risks from Hurricane Beryl and rising tensions within the Middle East and Europe. Asset managers increased their net bull position within the West Texas Intermediate by 13,265 lots to 249,081, the most important since October.
