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 18 November.

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Speculators bought a little over 13,000 lots as of last Tuesday, increasing net-long positions in Brent futures to more than 178,000 lots.

Gross-long positions in Brent increased by over 15,000 lots during the week, according to futures and options data from ICE Futures Europe.

The surge in net-long Brent positions was “driven by fresh longs entering the market,” two analysts from ING Bank noted.

The move highlights lingering worries over supply scarcity after recent US sanctions on Russian energy assets targeting Rosneft and Lukoil, the country’s two biggest oil producers, came into effect last week.

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

By Aparupa Mazumder

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