Over the last two weeks hedge funds have cut their net long positions to the lowest level
Crude oil prices fell $2 a barrel Tuesday, ending a seven week lows, as concerns over winter supplies continue to disappear.
US December light crude futures slid $1.72 to $47.37 a barrel on the NYMEX, over $8 (14 per cent) below the all-time peak at $55.67 struck on Oct. 25. This is also the lowest level since late September.
London Brent tumbled $2.21 to $43.71 a barrel on the IPE, also the lowest level in seven weeks.
Over the last two weeks hedge funds have cut their net long positions to the lowest level in a year in a switch to other financial markets, particularly equities.
US commercially available inventories of crude have risen for six straight weeks, pushing down prices.
Analysts expect that the US Energy Department will report another supply increase when it releases weekly data today.
