Oil bears are cashing out. Hedge funds slashed short positions in West Texas Intermediate by 13 percent in the week ended Sept. 1 as the largest three-day rally in 25 years sent crude up by almost $10 a barrel before it dropped again. It was the biggest liquidation of bearish bets since May. The week made for a wild ride in the crude markets as volatility jumped to a five-month high amid anxiety about a stubborn worldwide glut of crude. Rising production from Iran and the U.S. combined with weaker demand from China put an end to three days of gains on Sept. 1, the last day of the report week, as oil plummeted 7.7 percent. “There’s a lot of nervousness in this market,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “Everyone is retrenching in the face of […]