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Hedge funds boost bullish US oil bets at fastest pace since March

Net-long positions on West Texas Intermediate rose by 21,402 lots to 108,307 in the week ended July 28, the biggest weekly increase in about four months.

Reported · Written up by our desk · Energy

Hedge funds increased bullish exposure to US crude by the fastest pace since March, betting that renewed supply disruptions will lift demand for American oil, according to LiveMint Markets. Money managers raised their net-long positions on West Texas Intermediate by 21,402 lots to 108,307 in the week ended July 28, based on weekly CFTC data for oil futures and options. The change marked the biggest jump in about four months, with speculators holding the most bullish stance on US oil since mid-June.

The buildup was linked to ongoing disruptions tied to the Iran war and renewed attacks by Iran-backed Houthi militants on Saudi crude shipments through the Red Sea. Those disruptions come as the route has become more important for Saudi exports while Strait of Hormuz disruptions persist, LiveMint Markets reported. Additional supply worries were reinforced by fresh attacks on tankers loading crude at the Caspian Pipeline Consortium terminal on Russia’s Black Sea coast, which exports most of Kazakhstan’s oil. Traders also cited signs of tightness in fuel markets, with net-long positions on US gasoline rising to the highest in more than four months and long-only bets on US diesel at the highest in nearly five months.

LiveMint Markets also noted that speculators kept Brent crude bullish positioning broadly steady, with net-long positions easing by 6,948 to 185,083. The outlook reflected expectations that US crude exports remain elevated by historical standards as foreign buyers look to replace disrupted global supplies.

Latest closeWTI crude $86.80 ▲3.8%|Brent $90.12 ▲1.2%|Gasoline (RBOB) $3.171 ▼3.5%

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