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 10 February.

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Speculators bought little over 2,800 lots as of last Tuesday, increasing net-long positions in Brent futures to over 281,000 lots.

Gross-long positions in Brent increased by a little short of 2,200 lots during the week, according to futures and options data from ICE Futures Europe.

Geopolitical risks in Iran and Russia have supported the small increase in the speculative positions, according to market analysts.

“Lingering supply uncertainty when it comes to Iran, as well as Russian oil flows, has left speculators reluctant to sell the market,” two analysts from ING Bank noted.

Iran is the fourth-largest OPEC member, producing around 3.2 million b/d of crude oil. Meanwhile, Russia is the leading OPEC+ producer with an estimated production of over 9 million b/d.

Commenting on the latest data, the two ING analysts said, “there were only minor changes in speculative positioning over the week in ICE Brent.”

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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