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 27 January.
IMAGE: Oil storage tanks. Getty Images
Speculators bought little short of 30,000 lots as of last Tuesday, increasing net-long positions in Brent futures to over 246,000 lots.
Gross-long positions in Brent increased by more than 19,000 lots during the week, according to futures and options data from ICE Futures Europe.
The gain in net-long holdings reflects an uptick in fresh long buying, according to market analysts.
The development has brought geopolitical risks in Iran back into focus, as analysts caution that sustained defiance by Iran of US nuclear demands could heighten the risk of military confrontation.
“Speculative positioning shows that recent geopolitical tension encouraged fresh buying,” two analysts from ING Bank noted.
Iran is the fourth-largest OPEC member, producing around 3.2 million b/d of crude oil. A US military intervention could threaten oil supply flows from the Middle East.
“Money managers increased net longs in ICE Brent by 29,947 lots last week – the largest bullish stance since September 2025,” ING Bank analysts added.
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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