According to CoinMeta, hedge funds have significantly reduced their net short positions in European diesel to their lowest level in over two years, while increasing their new bullish bets. This indicates that traders expect this historic fuel supply crisis to continue for some time. Due to the reduction in crude oil supply from the Middle East and the renewed attacks on refineries in Ukraine, most of Russia's diesel exports have been embargoed, leading to a substantial tightening of diesel supplies. According to data from Intercontinental Exchange Europe Futures, over the past week, hedge funds have cut their net short positions in light diesel (gasoil) by 309 lots, bringing them to their lowest level since July 2024. At the same time, hedge funds have added 1,498 lots of net long positions, pushing their total long holdings to their highest level since the week before the outbreak of the US-Iran war. In terms of net positions, traders' bullish sentiment towards light diesel has reached its highest level in about six months.