Hedge Funds Hold Near-Record Short Positions In Petroleum

(Reuters) Oil prices have been rising gently during the past four trading sessions despite concerns about the continued rise in the U.S. rig count and enormous excess inventories. Front-month Brent futures prices are up by about $2 a barrel since touching a low of $44 on June 21, which could herald a break in the downtrend that had been in place since late May.

Rising prices most likely reflect hedge funds covering some short positions rather than a fundamental reappraisal of the outlook for supply, demand and inventories.

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