Speculators reduce net-long positions in Brent
Money managers and hedge funds have reduced their net-long bets on ICE Brent futures in the week to 16 June.
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Speculators sold more than 94,000 lots as of 16 June, decreasing net-long positions in Brent futures to a little over 114,000 lots.
The reduction in net-long positions comes amid the temporary 60-day peace agreement between the US and Iran, which is expected to restore commercial navigation through the Strait of Hormuz.
The current data marks the “smallest net long [position held] since December 2025,” two analysts from ING Bank said.
Gross-long positions in Brent futures also decreased by over 20,000 lots during the week, according to futures and options data from ICE Futures Europe.
The move was dominated by fresh shorts entering the market, according to analysts. “They [speculators] bought 74,581 lots, leaving the gross short at 231,218 lots, the largest since December,” ING Bank’s analysts said.
The global oil market has been caught in a tug-of-war between de-escalation efforts and the continued targeting of Middle Eastern energy infrastructure and commercial shipping, resulting in significant volatility in Brent crude futures.
Commenting on the latest data, ING Bank’s analysts added, “clearly, if US-Iran talks don’t progress well, there’s a very real risk that these shorts will have to run in and cover.”
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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