Hedge Funds Increase Bets on Gasoline and Diesel in the US — OilPrice
As of September 1, hedge funds had built a net long position of 177 million barrels in the most actively traded gasoline and diesel fuel contracts amid limited fuel supply in the United States. OilPrice reports, citing a column by analyst John Kemp.
Fuel prices are rising
According to the publication, the price of diesel fuel in the United States exceeded $5.90 per gallon, while gasoline surpassed $4.1505 per gallon as of September 7. A year earlier, gasoline cost $3.1971 per gallon. Last week, diesel fuel in the country set a record, exceeding $5.81 per gallon.
OilPrice notes that oil traders, who remained predominantly bearish during the first four months of the war between the United States, Israel and Iran, changed their approach to the fuel market. At the same time, their net position in crude oil remained somewhat bearish, Kemp noted.
More current news is available on the UA.News Telegram channel Telegram.
Inventories and refinery operations
The publication attributes the tense situation in the US market to more active exports, the oil industry's cautious response to rising prices, and fewer oil refineries than 30 years ago. During the summer, refiners increased output of jet fuel and diesel while reducing gasoline production, drawing down inventories as a result.
In mid-August, the difference between the value of a barrel of oil and the diesel fuel produced from it reached record levels in the United States and Europe, OilPrice writes. ING analysts believe that middle-distillate margins may remain high and volatile due to disruptions in diesel exports from the Middle East and Russia.
Seasonal refinery maintenance lasting several weeks may reduce total fuel output. At the time of publication, Brent was approaching $100 per barrel, while WTI exceeded $93.
