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Oil Bulls Run Scared in Global Volatility as U.S. Rivals Saudis

  • Hedge funds cut WTI net-long position by most since August
  • U.S. benchmark fund positioning drops first time in five weeks
A Royal Dutch Shell Plc oil rig operates near Mentone, Texas. 

A Royal Dutch Shell Plc oil rig operates near Mentone, Texas. 

Photographer: Matthew Busch/Bloomberg
Updated on

Oil enthusiasts are retreating as volatility takes hold of global markets and American gushers rival Saudi Arabia’s.

Hedge funds scaled back bets on rising West Texas Intermediate crude prices by the most since August as shock waves rattled everything from stocks to commodities. The rout intensified fears that demand for crude won’t suffice to drain surging supplies, triggering oil’s worst week since 2016. Futures lost more than $6 and closed below $60 a barrel for the first time this year.