Hedge funds are cautiously returning to the oil futures and options markets, following weeks of selling prompted by concerns over a weakening economy and prospect of a global recession, according to a report by Reuters.

Hedge funds and other money managers bought the equivalent of 54m barrels in the six most critical petroleum futures and options contracts during the week ending 9 January, largely reversing sales of 66m barrels seen during the previous week, according to records filed with ICE Futures Europe and the US Commodity Futures Trading Commission.

According to the report, while the overall outlook probably remains bearish, fund managers have shown a bullish stance on refined fuels in the United States, neutrality over Brent, and outright bearishness about West Texas Intermediate.