Hedge Funds Cut Oil Bets to Their Lowest Level in History:
Hedge fund bets on benchmark crude oil contracts
have fallen to their lowest level in over 13 years amid
expectations of increased supply and weakened demand.

Content

Hedge Funds

Federal Reserve

Chinese Central Bank

Hedge Funds Reduce Oil Bets to Record Lows

Hedge fund bets on benchmark crude oil contracts
have dropped to their lowest levels since more than 13 years ago,
amid expectations of increased supply and declining demand.
Fund managers cut their combined positions on Brent and West Texas Intermediate by 99,889 contracts,
bringing the total net long positions to 139,242 contracts,
according to data from the European Futures Exchange
and the Commodity Futures Trading Commission as of September 3.
This is the lowest level since March 2011.

The deterioration in sentiment occurred amid a sharp drop in prices in recent weeks,
driven by concerns about demand in the U.S.
and China and intensified by aggressive selling from algorithm-based funds.
Negative sentiment was further exacerbated
by the potential for a deal to restore Libyan production
and a possible increase in “OPEC+” production next month.
Despite the group suspending its production recovery plan,
this decline did not succeed in lifting prices.

Federal Reserve Proposes Changes to Bank Capital Rules

The U.S. Federal Reserve and other regulators
are preparing to unveil comprehensive proposed changes to bank capital rules,
aiming to overcome strong opposition from the banking sector,
according to people familiar with the matter.
The 450-page proposal is expected to be unveiled
on September 19 and will reshape key components
of the U.S. bank capital system known as “Basel 3 Endgame,”
according to those who requested anonymity as plans may change.

The proposed adjustments are expected to help calm the concerns of Wall Street banks,
which launched an unprecedented lobbying campaign
after the plan was revealed in mid-2023.
This may help avoid potential legal battles with the industry,
which has strongly argued that raising capital requirements
would harm the economy and low-income borrowers.

Chinese Central Bank Halts Gold Purchases for the Fourth Month Due to Record Prices

The Chinese central bank did not add any gold to its
reserves for the fourth consecutive month in August,
as gold prices reached record highs.
According to official data released on Saturday,
the amount of gold held by the People’s Bank of China was 72.8 million ounces
at the end of last month, unchanged.
The bank had added to its reserves for 18 consecutive months until April of this year,
helping to support strong gold prices.

The Chinese central bank’s halt in gold purchases strengthens
indications that high prices are curbing global demand for gold from central banks,
following strong buying in the first half of the year.
However, many analysts believe that the central bank
purchases will remain a major driver for gold this year.

Hedge Funds Cut Oil Bets to Their Lowest Level in History:

Hedge Funds Cut Oil Bets to Their Lowest Level in History:

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