Tariff maximum pressure, hedge fund crude oil long positions plummet to new lows since April.

As the August 1 deadline set by Trump for the trade agreement approaches, hedge funds have reduced their long positions in US crude oil to the lowest level since early April, with concerns in the market that the trade war will suppress energy demand. The latest data from the US Commodity Futures Trading Commission (CFTC) shows that as of the week ending July 22, fund managers reduced their net long positions in WTI crude oil by 10,018 contracts to 86,088 contracts, hitting a new low since April 8. Meanwhile, data from the Intercontinental Exchange (ICE) shows that net long positions in Brent crude oil decreased by 11,352 contracts to 227,393 contracts during the same period. The ongoing stalemate in negotiations between the US and major trading partners continues to raise concerns in the market, with investors worried that the trade war will drag down economic growth and weaken crude oil demand. As the peak summer travel season gradually fades, crude oil inventories at the key oil hub in Cushing, Oklahoma have risen for the third consecutive week. CFTC data also shows that, influenced by an increase in short positions, fund managers reduced their net long positions in US diesel by 1,659 contracts to 38,945 contracts. However, pure long positions in diesel increased by 109 contracts to 54,053 contracts, hitting a new high since late February, reflecting a tightening global diesel supply situation. ICE data shows that as of the week ending July 22, hedge funds increased their pure long positions in heating oil by 7,632 contracts to 132,133 contracts, reaching their highest level in over three years.