(Bloomberg) -- Hedge funds turned the most bearish on diesel and gasoil on record as concerns about the global economy and fuel demand persist.
Money managers deepened their net bearish position on diesel to 45,437 lots, the most on record in data going back to June 2006, weekly CFTC data on futures and options show. Meanwhile, their bearish position on gasoil increased to 72,683 lots, the most in more than a decade of data, according to ICE Futures Europe.
Diesel demand in Europe has slid from previous years as industrial activity and road fuel consumption weaken. In the US, manufacturing activity shrank in August for a fifth month, reflecting faster rates of declines in orders and production.
Meanwhile, the four-week average of US distillate demand is still hovering below levels at this point in 2023. Inventories of the fuel are sitting at the highest for this time of year since 2021, stoking worries about oversupply.
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