Oil speculators missed out as record demand from U.S. refineries
helped trim supplies from their highest level in more than eight decades
and drive prices higher.
Hedge funds and other money managers reduced their net-long position
in West Texas Intermediate crude by 7.1 percent in the seven days ended
May 19, the most in two months, U.S. Commodity Futures Trading
Commission data show. Short positions anticipating lower prices expanded
by 30 percent.
Crude snapped a five-day decline the following day after U.S. production fell to a three-month low and inventories slipped to the least since March. Demand from refineries is the strongest for this time of year on record as they prepare for the nation’s peak driving season.
“There are increasing signs that U.S. production has topped out,” Phil Flynn, senior market analyst at the Price Futures Group in Chicago, said by phone May 22. “Refiners are using a lot of oil.”
WTI futures fell $3.49 to $57.26 a barrel on the New York Mercantile Exchange in the period covered by the CFTC report as the dollar strengthened. The contract added 2 cents to $59.74 in electronic trading at 1:19 p.m. Singapore time Monday.
Prices have risen 37 percent from the six-year low reached March 17.U.S. crude-oil production dropped 1.2 percent in the week ended May 15 to 9.26 million barrels a day, the lowest level since Feb. 6, according to the Energy Information Administration.
Crude snapped a five-day decline the following day after U.S. production fell to a three-month low and inventories slipped to the least since March. Demand from refineries is the strongest for this time of year on record as they prepare for the nation’s peak driving season.
“There are increasing signs that U.S. production has topped out,” Phil Flynn, senior market analyst at the Price Futures Group in Chicago, said by phone May 22. “Refiners are using a lot of oil.”
WTI futures fell $3.49 to $57.26 a barrel on the New York Mercantile Exchange in the period covered by the CFTC report as the dollar strengthened. The contract added 2 cents to $59.74 in electronic trading at 1:19 p.m. Singapore time Monday.
Prices have risen 37 percent from the six-year low reached March 17.U.S. crude-oil production dropped 1.2 percent in the week ended May 15 to 9.26 million barrels a day, the lowest level since Feb. 6, according to the Energy Information Administration.
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