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Market Chatter: Hedge Funds Raise Bullish Bets on European Diesel Amid Shortage

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Hedge funds have increased bullish bets on European diesel, an indication that traders expect the historic shortage in fuels to continue, with bearish bets falling to a two-year low, Bloomberg reported Saturday.

A combination of factors including the Middle East conflict, an export ban on Russian diesel, and increasing Ukrainian attacks on Russian refineries, has resulted in all-time high profit margins for diesel and gasoil production from crude oil.

Hedge funds cut short-only bets on gasoil by 309 lots to their lowest since July 2024 with the crisis showing little sign of easing, the report said, citing ICE Futures Europe data.

Hedge funds increased their long-only positions by 1,498, with the total the highest since February, before the start beginning of the US-Iran war. Overall, net trader positioning was the most bullish in around six months, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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Weekly Crude Gains Nearly 6% as Hormuz Disruptions, US-Iran Tensions Lift Prices

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