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Hedge funds boost bullish Brent as Strait of Hormuz risk rises
Hedge funds increased net-long Brent by 37,837 contracts to 261,435 in the week through Sept. 1, while diesel positioning also hit a multi month high amid shipping disruption fears.
Hedge funds have increased bullish positioning in Brent crude to its highest level since May as renewed fighting between the US and Iran raises the risk of further disruption to shipments through the Strait of Hormuz, according to a report cited by Hedgeweek via Bloomberg.
Money managers lifted their net-long Brent futures and options position by 37,837 contracts to 261,435 in the week through Sept. 1, data from ICE Futures Europe showed. That level marked the strongest bullish positioning in more than three months.
The shift also extends to US crude, with net-long positions reaching their highest level since June, according to Commodity Futures Trading Commission data. The renewed confrontation has complicated efforts to restore shipping, as US strikes and Iranian retaliation add pressure on vessel traffic, and Iran has renewed threats to ships using the waterway.
Hedgeweek noted that these developments have supported higher prices across refined products as well, with diesel net-bullish positioning rising to its highest level since March. US retail diesel prices reached a record $5.85 a gallon on Thursday, reflecting the impact of crude and refined product supply disruptions on consumers.
Latest closeWTI crude $90.70 ▲0.5%|Brent $95.32 ▲0.7%