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Hedge funds expand bullish WTI bets amid rising supply disruptions
Net-long positions on West Texas Intermediate climbed by 21,402 lots to 108,307 in the week ended July 28, the fastest pace since March, as Red Sea and other disruptions lift demand expectations for US crude.
Hedge funds increased bullish positioning in US oil at the fastest pace since March, according to weekly CFTC data cited by LiveMint Markets. In the week ended July 28, money managers raised their net-long positions on West Texas Intermediate by 21,402 lots to 108,307, the biggest weekly jump in about four months.
The shift reflects supply concerns tied to Iran and wider shipping disruptions, with speculators pointing to renewed attacks associated with Iran-backed Houthi militants on Saudi crude shipments through the Red Sea. The article also notes 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, compounding worries about global supplies.
Traders expect US crude exports to stay elevated as foreign buyers look to replace disrupted supplies. The report adds that speculators left their bullish stance on Brent largely unchanged, with net-long positions easing by 6,948 lots to 185,083, based on ICE Futures Europe data.
Fuel markets also showed signs of tightness, supporting additional bullish wagers, the report said. Net-long positions on US gasoline rose to the highest level in more than four months, while long-only bets on US diesel were at the highest in nearly five months.
Latest closeWTI crude $86.80 ▲3.8%|Brent $90.12 ▲1.2%|Gasoline (RBOB) $3.171 ▼3.5%