Hedge funds betting oil would sink toward $40 a barrel missed the biggest rally in eight weeks. Money managers’ short position in West Texas Intermediate crude jumped 24 percent in the week ended Oct. 27, according to data from the Commodity Futures Trading Commission. Net-long positions declined 15 percent, the most since July. Oil surged after a government report on Oct. 28 showed that U.S. refiners came back from seasonal maintenance faster than expected, boosting crude demand. Prices slipped to a the lowest level since August before the data’s release on concern that oil companies aren’t cutting production fast enough to stem a global oversupply. “There are a lot of momentum traders in the market,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone. “They were betting that prices were going to fall further. They obviously didn’t get […]