Hedge Funds Bet Big on Fuels Amid U.S. Supply Crunch
Funds have turned bullish on fuels as a U.S. supply squeeze tightens markets, with hedge funds holding a net long of about 177 million barrels in gasoline and diesel as of Sept. 1. Diesel prices have surged above $5.90/gal and gasoline around $4.15/gal, while inventories remain tight and refinery maintenance looms. Disruptions to Middle East and Russian flows, plus fewer U.S. refiners, suggest relief is unlikely and fuel markets may stay tight as Brent nears $100 and WTI sits in the low-to-mid $90s.