Hedge funds and other money managers cut their net long US crude futures and options positions in the week to March 14, the third consecutive cut, US Commodity Futures Trading Commission (CFTC) said on Friday. Hedge fund bets on crude have been closely watched as oil futures have retreated in the past two weeks, breaking out of a range had held since OPEC agreed in November to cut production to reduce a supply-glut.
Prices have retreated as a supply overhang has persisted despite the Organisation of the Petroleum Exporting Countries' efforts to reduce output. Evidence has continued to mount that US shale production is growing, proving more resilient in the face of lower prices than previously expected.
The speculator group cut its combined futures and options position in New York and London by 86,582 contracts to 315,077 during the period. The cut was the largest cut on record, according to CFTC data compiled by Reuters. The net longs are the lowest since mid-December. US crude fell more than 9 percent for the week ended March 10, the most since early November.