Oil short-sellers return as doubts loom on OPEC's horizon

Bets on falling Brent rose by the most since June

Short-selling is rearing its head in the oil market again.

After bullish bets on Brent crude hit a record and futures surged to two-year highs, hedge funds are pulling back with a sense that the rally has reached its limit for now. Wagers on lower prices rose by the most since June as West Asian tensions took a backseat, while uncertainty looms over Saudi Arabia’s push to extend OPEC’s output curbs this month.

“We’re at levels where the market appears to have crested,” said Gene McGillian, a market research manager at Tradition Energy in Stamford, Connecticut. “Continuing to see supply draw-downs is