Hedge funds have unwound most of the record short position they established in U.S. crude futures and options between June and August amid signs that the oil market is rebalancing. Hedge funds and other money managers had cut their gross short position in the main NYMEX WTI futures and options contract to 90 million barrels by Oct 13 ( reut.rs/1LxSDoK ). Reported shorts had been reduced from 108 million barrels the previous week and a peak of 163 million barrels in early August, according to the U.S. Commodity Futures Trading Commission. Fifty-seven hedge funds were still running reported short positions last Tuesday, down modestly from a peak of 66 in August. But the average short position of those who remain has been almost halved to 1.58 million barrels, down from 2.86 million ( tmsnrt.rs/1LxTwO7 ). Hedge funds have become much less aggressive in shorting U.S. crude as the previous […]