Speculators hike net-long positions in Brent

Money managers and hedge funds have increased their net-long bets on ICE Brent futures in the week to 26 August.

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Speculators bought a little short of 24,000 lots as of last Tuesday, increasing net-long positions in Brent futures to over 206,000 lots, according to futures and options data from ICE Futures Europe.

The rise in net-long Brent positions follows three straight weeks of declines, as geopolitical risks and supply concerns move to the forefront.

The move was “predominantly driven by fresh buying,” according to two analysts from ING Bank. The gross-long positions in Brent gained by a little over 29,000 lots during the week.

Front-month ICE Brent contract has gained some momentum in recent days amid diminishing hopes for a ceasefire deal between Russia and Ukraine.

Last week, German Chancellor Friedrich Merz said a long-anticipated meeting between Russian President Vladimir Putin and Ukrainian counterpart Volodymyr Zelensky will not take place.

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

By Aparupa Mazumder

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