The mood in the crude oil and oil product futures market turned decisively sour in the fourth quarter of 2018 as building crude oil oversupply and signs of slowing global economic growth rate hit investor sentiment. Hedge funds and other money managers liquidated a lot of bullish positions in crude oil and in middle distillates in October, November, and December. By the end of 2018, the net long position—the difference between bets that prices will rise and bets on a drop—in U.S. diesel futures had flipped to a net short position, where bets on a drop prevail over bets on price increases. The overall bearish position in diesel is consistent with the market behavior before and during economic slowdowns or recessions in the past two to three decades, Reuters market analyst John Kemp argues. Middle distillates—such as diesel, jet fuel, and gasoil—are more closely associated with economic cycles than, […]