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 23 December.

IMAGE: Oil storage tanks. Getty Images

Speculators bought more than65,000 lotsas of last week, increasing net-long positions in Brent futures to a little short of 99,000 lots.

Gross-long positions in Brent increased by nearly 25,000 lots during the week, according to futures and options data from ICE Futures Europe.

The surge in net-long Brent positions can be attributed to fresh longs entering the market, according to the data.

The move highlights lingering worries over supply scarcity after recent US sanctions targeting Venezuelan oil exports, as well as a lack of clarity in Ukraine peace talks amid heightened cross-border firing.

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

Please get in touch with comments or additional info to news@engine.online