New Delhi: Hedge funds slightly increased their bullish wagers on U.S. crude in the week to Sept. 25, data showed on Friday, as Saudi Arabia and Russia ruled out any immediate increase in production, raising concerns about supply shortages. The speculator group raised its combined futures and options position in New York and London by 3,728 contracts to 346,566 during the period, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Oil prices posted fresh four-year highs in the period after top global producers ended a meeting with no formal recommendation for any additional supply boost to counter falling supply from Iran.
U.S. sanctions affecting Iran's petroleum sector, due to come into force in November, are expected to tighten global crude supply. JPMorgan said U.S. sanctions on Iran could lead to a loss of 1.5 million barrels per day (bpd), while commodities trader Mercuria warned that as much as 2 million bpd could be knocked out of the market.
Brent crude speculators raised their net long positions by 28,465 contracts to 496,343 in the week to Sept. 25, the highest in four months, data from Intercontinental Exchange showed.