As WTI crude oil prices fell to their lowest level in seven weeksflushtexasholdem, hedge funds aggressively shorted WTI crude oil. Data from the U.S. Commodity Futures Data Commission (CFTC) showed that in the week ended April 30, hedge funds 'net long positions in WTI crude oil decreased by 6957 lots to 172689 lots, the third consecutive week of decline. At the same time, hedge fund short WTI positions increased by 9705 lots to 78141 lots, the highest level since January.
Crude oil prices fell to their lowest level since mid-March this week as U.S. crude oil inventories rose more than expected and tensions eased in the Middle East. In addition, stubborn inflation in the United States has led the Federal Reserve to keep interest rates high, which has curbed the rise of dollar-denominated crude oil, while slowing U.S. economic growth has depressed demand for refined oils such as gasoline and diesel.