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Oil slips after Trump comments, but Strait of Hormuz talks loom
Hedge funds and other money managers increased net ICE Brent futures and options positioning to the equivalent of more than 192 million barrels in the week ending July 21.
Oil prices pulled back after comments from President Donald Trump, but market focus remains on negotiations related to the Strait of Hormuz blockade, which could reshape crude supply expectations, OilPrice writes.
The outlet says the signing of a US-Iran memorandum of understanding earlier triggered one of the largest hedge fund sell-offs for crude futures and options, yet later closure of the Strait of Hormuz, and Bab el-Mandeb, helped bring bullish positioning back.
According to OilPrice, net positions held by hedge funds and other money managers in ICE Brent futures and options rebounded to the equivalent of more than 192 million barrels, a 2-month high, for the week ending July 21.
The report also notes crude futures trading activity is lower, with open interest in ICE Brent down 11% year-over-year, a dynamic it links to wider price swing amplitudes, and it cites hedge fund net longs in ICE gasoil rising to 84,540 lots as diesel stays in focus.
Latest closeWTI crude $81.92 ▼8.3%|Brent $87.83 ▼9.2%