Trump's latest comments cooled oil prices, but talks over ending the Strait of Hormuz blockade could prove far more consequential.
Hedge Funds Pile Back into Oil as Chokepoint Risks Return
- The signing of the US-Iran Memorandum of Understanding triggered one of the largest hedge fund sell-offs for crude futures and options, however the closure of the Strait of Hormuz (and now of Bab el-Mandeb) has made bullishness in vogue again.
- Net positions held by hedge funds and other money managers in ICE Brent futures and options rebounded to the equivalent of more than 192 million barrels, a 2-month high, in the week ending July 21.
- Interestingly, the positioning of hedge funds in Nymex WTI has been somewhat stagnant throughout June-July, suggesting that speculative market participants prefer to avoid futures contract with physical delivery.
#futures #july
Hedge Funds Pile Back into Oil as Chokepoint Risks Return
- The signing of the US-Iran Memorandum of Understanding triggered one of the largest hedge fund sell-offs for crude futures and options, however the closure of the Strait of Hormuz (and now of Bab el-Mandeb) has made bullishness in vogue again.
- Net positions held by hedge funds and other money managers in ICE Brent futures and options rebounded to the equivalent of more than 192 million barrels, a 2-month high, in the week ending July 21.
- Interestingly, the positioning of hedge funds in Nymex WTI has been somewhat stagnant throughout June-July, suggesting that speculative market participants prefer to avoid futures contract with physical delivery.
#futures #july
3 months ago
