Hedge Funds Ditch Diesel As Economic Fears Mount

Institutional traders are selling their fuel positions at the fastest rate since early March as a slowdown looms over much of the world. This is the latest sign that worry about the world's immediate economic future is deepening as Europe faces a very real recession and the Fed risks stagflation in its fight with inflation. Reuters' John Kemp reported this week in his regular column that hedge funds and other market movers sold the equivalent of 8 million barrels of U.S. middle distillates and the same amount of European gas oil in the week to…