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 17 March.

IMAGE: Oil storage tanks. Getty Images

Speculators bought over 77,000 lots as of last Tuesday, increasing net-long positions in Brent futures to over 428,000 lots.

Gross-long positions in Brent increased by a little short of 69,000 lots during the week, according to futures and options data from ICE Futures Europe.

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

Now in its fourth week, the Middle East conflict has curtailed oil flows across the region and forced output cuts by major producers, including the UAE and Saudi Arabia.

Overnight, Iran reported attacks on energy facilities in the country’s Isfahan and Khorramshahr regions, Al Jazeera reported.

Iran is the third-largest OPEC member, producing around 3.2 million b/d of crude oil. Market analysts have warned that targeting Tehran’s oil infrastructure could drive global oil prices sharply higher.

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