Hedge funds have cut pure short positions in ICE European gasoil to their lowest since July 2024 and added fresh longs, signaling expectations the fuel supply crisis will persist. Gasoil and diesel refining margins are near record highs. Supply has tightened after reduced Middle East crude flows, renewed Ukrainian strikes on refineries and the effective ban on most Russian diesel exports. ICE data show funds cut pure gasoil shorts by 309 contracts over the week and added 1,498 pure long contract

Hedge funds have cut pure short positions in ICE European gasoil to their lowest since July 2024 and added fresh longs, signaling expectations the fuel supply crisis will persist. Gasoil and diesel refining margins are near record highs. Supply has tightened after reduced Middle East crude flows, renewed Ukrainian strikes on refineries and the effective ban on most Russian diesel exports. ICE data show funds cut pure gasoil shorts by 309 contracts over the week and added 1,498 pure long contracts, lifting gross long exposure to the highest level since the week before the US-Iran war began. On a net basis funds’ bullish positioning in gasoil is about a six-month high.