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 20 October.

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Speculators bought a little short of 9,000 lots as of 20 October, increasing net-long positions in Brent futures to over 241,000 lots.

Gross-long positions in Brent futures increased by more than 13,000 lots during the week.

The surge in net-long positions was driven largely by an increase in gross-long positions, rather than fresh shorts entering the market, according to futures and options data from ICE Futures Europe.

Market participants have hiked net-long bets as supply-related risks from the Middle East continue to grow, according to market analysts.

Notably, Brent crude’s price remains elevated amid incessant attacks on critical energy infrastructure, while commercial navigation through the Strait of Hormuz remains choked.

When speculators boost net-long positions, prices typically rise. Conversely, when they reduce these positions, oil 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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