Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Bullish Bets On Brent Crude Cut As Gross Short Hits A Record

BySaxo Bank
AuthorSaxo Bank
Published 10/28/2013, 09:51 AM
Updated 03/19/2019, 04:00 AM

Hedge Funds cut their net-long exposure to Brent Crude by 11,851 contracts during the week ending October 22, according to the latest data from the ICE Europe Exchange. Speculative positions have now been reduced in seven out of the last eight weeks with the current net position of 150,161 some 35 percent below the record peak in August when the Syrian conflict and Libyan strikes lifted the price to USD 117.34/barrel.
Chart 1
Interestingly, both the gross long and short positions were increased, indicating some uncertainty about the near-term direction. This could help lift volatility from its current historically low levels of below 20 percent. The gross short actually reached 83,466 contracts, the highest since the exchange began reporting this data back in January 2011.
Chart 2
The speculative bubble which continued to inflate over the summer has now popped with the percentage of speculative net-long positionings compared with total open interest in Brent Crude now back down close to eight percent compared with 12.1 percent back on September 1. Compared with the previous big unwinds of speculative extended positions some further long liquidation can not be ruled out. However, the fact that both shorts and longs are rising has left the market less one-sided than just a few weeks ago.
Chart 3

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.