Hedge funds cut bullish crude oil bets last week

NEW YORK: Hedge funds and other money managers cut their net long US crude futures and options positions in the week to May 28, the US Commodity Futures Trading Commission (CFTC) said on Friday.

The speculator group cut its combined futures and options position in New York and London by 38,030 contracts to 212,080 during the period.

US crude futures fell during the period, dropping about 6 percent to $59.14 a barrel on concerns the US-China trade war could trigger a global economic downturn. Tight supply due to OPEC output cuts and political tensions in the Middle East provided a floor for prices, however, preventing a further slide.

Brent crude speculators cut long net long positions by 40,879 contracts 352,736 in the week, according to data from the Intercontinental Exchange.

Natural gas speculators shifted their positions from net long to net short for the first time since May 2016, betting prices will decline on expectations that record and growing production will enable utilities to refill storage caverns to near normal levels by the start of the winter heating season.

Speculators in four major NYMEX and ICE markets cut 31,090 contracts in the week, changing their bets from a bullish net long position in the week to May 21 to a bearish 958 net shorts in the week to May 28.