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 28 April.

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Speculators bought almost 14,000 lots as of last Tuesday, increasing net-long positions in Brent futures to over 383,000 lots.

Gross-long positions in Brent futures gained by a little short of 17,000 lots during the week, according to futures and options data from ICE Futures Europe.

The move comes amid renewed tensions between the US and Iran.

Commenting on the latest data, ING Bank’s analysts said, “the move was dominated by fresh longs entering the market.”

In recent weeks, traders have balanced de-escalation signals against persistent attacks on vessels in the Strait of Hormuz and energy infrastructure in the Middle East, leading to heightened volatility in Brent prices.

When speculators boost 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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