Traders gesture while working in the crude oil and natural gas options pit on the floor of the New York Mercantile Exchange March 7, 2011. Hedge funds remain cautious on the outlook for oil prices despite confident statements from Saudi Arabia that global oil inventories will decline substantially in the next few months. Asset managers cut their combined net long position in the three main futures and options contracts linked to Brent and WTI by 39 million barrels in the week ending June 6 ( tmsnrt.rs/2ske0ve ). The net position had been increased by a total of 114 million barrels over the previous three weeks, analysis of data published by regulators and exchanges showed ( tmsnrt.rs/2rRLXld ). The earlier increase, however, was driven mostly by covering of short positions rather than the creation of new longs, and the short-covering now seems to have run its course. Hedge funds added […]