Column: Profit-taking hits hedge funds' oil positions: Kemp | Reuters
Petroleum-related derivative markets were hit by the largest wave of hedge fund selling last week for almost three months as portfolio managers realised some profits after the recent rally in oil prices.
Hedge funds and other money managers sold the equivalent of 45 million barrels in the six most important petroleum-related futures and options contracts in the week to Nov. 2 (https://tmsnrt.rs/3BQfEnr).
Most selling was driven by the reduction of existing bullish long positions (-39 million barrels) rather than the creation of new bearish short ones (+6 million), consistent with profit-taking rather than aggressive short selling.
Portfolio managers were sellers across the whole complex, including NYMEX and ICE WTI (-15 million barrels), Brent (-10 million), European gas oil (-9 million), U.S. heating oil (-6 million) and U.S. gasoline (-5 million).
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