LONDON: Investors have turned deeply bearish on diesel, with bets on falling prices surging to the highest level since lockdowns began in early 2020.
Net-long positions on US diesel fell by 4,086 contracts to 24,548, a four-year low, according to CFTC data for the week ended Aug 20. Meanwhile, bearish bets on gasoil fell by 26,875 net-short positions to 27,207 – the lowest in more than a year, according to ICE Futures Europe.
The pullback coincides with a global fuel glut that sent New York futures to the weakest point in more than a year. While Europe faces a deluge of diesel it probably doesn’t need, the US is grappling with seasonally high supplies and demand at a 14-year low for this time of year.
Investors were more sanguine about petrol demand, boosting bullish bets to the highest in four weeks, even as futures fell near a six-month low.