Bloomberg) — Hedge funds increased bullish bets on West Texas Intermediate oil to the highest level since May on expectations the gap between the U.S. benchmark price and Brent, the standard for more than half the world’s crude, will continue to narrow.
Money managers boosted net-long wagers in futures and options by 15 percent in the week ended Oct. 25, according to the Commodity Futures Trading Commission’s Commitments of Traders report on Oct. 28. Hedge funds slashed bullish bets on Brent by 11 percent, according to data from ICE Futures Europe, as the contract’s premium over U.S. oil delivered to storage in Cushing, Oklahoma, shrank 22 percent.
