Hedge Funds Pile Into Fuels as U.S. Supply Squeeze Deepens
For the first four months of the war between the United States and Israel and Iran, oil traders remained largely bearish. The overwhelming expectation was that the war would end soon—even as July rolled around—and oil flows out of Hormuz would recover. Instead, the world is slipping into a fuel shor
Source: OilPrice.com
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DW NOTE
Hedge funds are buying fuel contracts while the Strait of Hormuz has been closed for over a month and WTI crude sits 18% below yearly highs. Either the funds see a supply crunch the market has somehow missed, or they're betting on positioning that hasn't priced in 1.3 billion barrels of cumulative Middle East supply loss. One of those views will be expensive.