Hedge funds have pared back bullish bets on crude to their weakest level in 17 years, amid mounting concerns that supply will soon outstrip demand, according to a report by Bloomberg citing data from the Commodity Futures Trading Commission (CFTC).

The CFTC's figures show that Money managers cut their net-long positions on West Texas Intermediate (WTI) futures by 19,578 contracts to just 29,686 in the week ending Tuesday,19 August, marking the lowest net-long stance since October 2008.

The retreat reflects a shift in hedge fund sentiment as geopolitical risk premiums fade and oil market forecasts turn bearish. Recent signals from Washington about renewed diplomatic efforts to end the war in Ukraine have lowered expectations of further sanctions on Russian crude. At the same time, major energy agencies are projecting a supply surplus into year-end, reinforcing short-side positioning across the market.