Hedge funds and money managers cut their bets on rising Brent crude oil for the fifth consecutive week on Monday, bringing net longs close to a three-month low, exchange data released on Monday showed.
Driven by an eight-week high in short positions, or bets that prices will drop, net long positions fell by 7,075 contracts to 201,180 in the week to June 9, according to the InterContinental Exchange.
While long positions did rise for the first time in more than a month, they remain at the lowest levels since February, highlighting the cautious nature investors are taking with oil prices.
Brent is more than 40 percent lower than in June 2014, when a shale-boom driven surplus in physical crude oil markets began to drag prices lower.
A decision earlier this month by the Organization of the Petroleum Exporting Countries not to cut production kept a damper on prices.
Short positions grew by 12,503 contracts, or more than 25 percent, to 61,830.
Investors also cut net long positions of gasoil – low-sulphur diesel – futures, which fell by 7,304 contracts to 57,992.
