Hedge Funds Turn Bullish on WTI as US Fuel Shortage Deepens

WTI sentiment among speculative funds has reversed sharply after four months of bearish positioning built on expectations that the Hormuz conflict would resolve quickly. That thesis has broken down, and hedge funds are now piling into fuel-linked exposure as the world's largest crude consumer and exporter faces a genuine domestic supply squeeze.

The shift matters for WTI because U.S. refined product tightness typically feeds back into crude demand and pricing dynamics, reinforcing upward pressure on the benchmark. With traders no longer betting on a swift de-escalation, positioning data suggests conviction is building behind sustained WTI strength rather than a temporary geopolitical spike.