Speculators, Spiking Diesel, Yields and US Surpluses Managed money positions in petroleum futures seem more concerned about increasing US supply and a high-price cure cycle than an enduring energy crisis. At about 10% of open interest, hedge funds are modestly net-long amid the recent surge in the heating oil (diesel) future above $5 per gallon and over 5% in the US Treasury 5-year yield, which is the highest on a month-end basis since 2006. My graphic highlights the spiking diesel price and 5-year yield juxtaposed against record-setting US crude oil and liquid-fuel net exports. Lower prices may be a primary force to curtail US supply surpluses approaching 5 million barrels a day. In 2018, when speculators stretched to almost 25% net-long, the US was importing about 3 million barrels a day and the diesel price topped near $2.35, about where it was before the US attack on Iran. Full report on the Bloomberg here: https://blinks.bloomberg.com/news/stories/tn77yar24u80 {BI COMD} #Crude #energycrisis #bonds @BBGIntelligence