Hedge funds significantly reduced their bullish bets on crude oil to 2007 lows: concerns about oversupply and energy consumption prospects.

Due to increasing uncertainty in economic policy exacerbating concerns of oversupply, hedge funds have reduced their bullish positions on U.S. crude oil to the lowest level in about 18 years. Data from the U.S. Commodity Futures Trading Commission shows that as of the week ending on August 26th, fund managers cut their net long bets on WTI crude oil by 5,461 contracts to 24,225 contracts, the lowest level since January 2007. Data shows that bets on short positions for WTI crude oil have reached a 20-month high. Fund managers have been less optimistic about oil for four consecutive weeks, as concerns grow about a potential oversupply in the oil market by the end of the year, while the U.S.-led trade war continues to disrupt energy consumption prospects.