SAN FRANCISCO (MarketWatch) -- For the first time in 17 months, hedge funds in July made more bets on oil prices falling than rising, according to the latest government data.

Short positions from noncommercial investors, hedge funds and other large investors that don't actually take delivery of oil, surpassed long positions in July for the first month since February 2007, data from the U.S. Commodity Futures Trading Commission showed. Short positions are bets on falling prices while long positions bet on rising prices.