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Oil nears $98 on Hormuz shipping risks and China demand recovery
Brent briefly topped $98 a barrel and is up about 60% in 2026, while hedge funds raised net-bullish Brent exposure to the highest level since May.
Oil prices moved closer to $100 a barrel as threats to shipping through the Strait of Hormuz and a revival in Chinese crude buying tightened the outlook for global supplies, according to Bloomberg via Hedgeweek. Brent briefly climbed above $98 a barrel before trimming gains during a relatively quiet session with US markets closed for the Labor Day holiday.
Uncertainty tied to the Middle East conflict is contributing to the risk of disruptions along one of the world’s key oil transit routes. Iran said a deal with Oman to oversee shipping through the Strait could be reached within days, but the prospects are complicated by heightened tensions with Washington after a US strike on Iranian vessels over the weekend, while Iran warned vessels of potential attacks near the Omani coast.
Supply worries also intensified after reports of a fresh attack on Saudi Aramco facilities in Jazan, the latest incident following a series of strikes in the region that have already contributed to the closure of a major refinery. The fundamental backdrop is further supported by renewed Chinese demand after a prior pullback that had helped cap prices during the early stages of the conflict.
Hedgeweek cited positioning data indicating hedge funds have increased oil exposure, with net-bullish positioning in Brent reaching its highest level since May in the week to September 1. Net-long positions in US crude rose to their strongest level since June, as refined products such as diesel have risen more sharply alongside ongoing geopolitical and supply pressures, the report said.
Latest closeWTI crude $90.70 ▲0.5%|Brent $95.32 ▲0.7%