Speculators increase net-long positions in Brent

Money managers and hedge funds have increased their net-long bets on ICE Brent futures, in the week to 31 March.

IMAGE: Oil pumpjacks. Getty Images

Speculators bought over 22,000 lots as of last Tuesday, increasing net-long positions in Brent futures to more than 429,000 lots.

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

Persistent geopolitical risks surrounding US-Israel conflict with Iran remain a key driver of speculative activity, according to market analysts.

The Middle East conflict has curtailed oil flows across the region and forced output cuts by several Arab producers.

Market uncertainty and supply risks have continued to support bullish positioning in oil so far this year.

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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