With easing tensions in the Middle East and a clouded fundamental outlook weighing on oil prices, hedge funds slashed their bullish bets on benchmark Brent crude last week to the lowest level seen in eight weeks, according to a report by Bloomberg.

The report cites figures from ICE Futures Europe as showing that long-only Brent positions fell by 53,341 to 341,835 over the week ending 7 May, while hedge fund also reduced their bullish petroleum bets to the lowest level in six months.

Prices fell below $80 on 1 May and have hovered around seven-week lows for much of the week.