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Oil hedge funds place their bets on heat-fueled hurricane season

Bullish gasoline positions have hit their highest since the day Russia invaded Ukraine and will almost certainly rise further if record Atlantic Ocean heat draws a hurricane into the Gulf of Mexico and disrupts refineries, investors and analysts said.

Money managers in the week to Aug. 1 boosted their net long holdings of NYMEX RBOB gasoline futures to the highest since late February 2022. On a seasonal basis, this position is at a three-year high, data from the Commodity Futures Trading Commission shows.

Look at the rally in gasoline and heating oil cracks over the last two or three weeks and you can see, everyone is positioned for a very interesting hurricane season," said Brent Belote, who previously traded at JP Morgan's oil desk and now runs his own $25-million hedge fund, Cayler Capital.

Oil hedge funds place their bets on heat-fueled hurricane season | Reuters