Speculators cut net-long positions in Brent

Money managers and hedge funds have reduced their net-long bets on ICE Brent futures, in the week to 21 April.

IMAGE: Oil storage tanks. Getty Images

Speculators sold a little over 4,000 lots as of last Tuesday, decreasing net-long positions in Brent futures to about 369,000 lots.

Gross-long positions in Brent futures declined by more than 2,000 lots during the week, according to futures and options data from ICE Futures Europe.

The move comes amid some market expectations of a ceasefire deal between the US and Iran.

Commenting on the latest data, ING Bank’s analysts noted “it does not entirely capture the move seen in the market over the last week.”

In recent weeks, market traders have been balancing de-escalation signals against persistent attacks on vessels and energy infrastructure, leading to heightened volatility in Brent's price.

When speculators reduce net-long positions, prices tend to decline. Conversely, when they boost these positions, oil prices typically rise, leading to a cycle where their actions can influence oil prices and the market.

By Aparupa Mazumder

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