Oil’s gloomy summer triggers hedge fund doubts on petroleum

NEW YORK: Hedge fund pessimism about crude prices is spilling into petroleum markets, even at the time of year when demand is highest.

With the US awash in petroleum, money managers for the first time on record were bearish on the fuel in the month of June, when the driving season is heading for its peak. At the same time, bets on falling West Texas Intermediate crude prices surged by almost a third in the week through June 13, US Commodity Futures Trading Commission data show. That increase in short positions on oil was the biggest in five weeks.