Speculators reduce net-long positions in Brent

Money managers and hedge funds have cut their net-long bets on ICE Brent futures, in the week to 14 April.

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Speculators sold almost 51,000 lots as of last Tuesday, decreasing net-long positions in Brent futures to about 373,000 lots.

Gross-long positions in Brent futures declined by a little over 38,000 lots during the week, according to futures and options data from ICE Futures Europe.

The decline in net-long bets “was primarily driven by longs liquidating,” two analysts from ING Bank noted.

The move can be attributed to market expectations of a ceasefire deal between the US and Iran, according to analysts.

Commenting on the latest data, ING Bank’s analysts noted “hopes for de-escalation led speculators to reduce their net long in ICE Brent.”

In recent weeks, market traders have been balancing de-escalation signals against persistent attacks on vessels and energy infrastructure, leading to heightened volatility in Brent's price.

“The sharp, rapid swings in the market are creating a challenging environment for participants,” the analysts added.

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

By Aparupa Mazumder

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