Hedge Fund Bullishness on Crude Oil Hits Highest Level Since 2020

BlockBeats News, March 14th, as the oil market saw its most volatile period ever, hedge funds' bullishness on Brent crude reached the highest level in six years. Intercontinental Exchange European Futures data for the week of March 10th showed that fund managers increased their net long position on this global benchmark by 65,438 contracts to 351,032 contracts, the highest level since February 2020. Meanwhile, data from the U.S. Commodity Futures Trading Commission showed that bullish bets on U.S. crude oil rose to an eight-month high.

The ongoing Middle East conflict has nearly paralyzed traffic in the Strait of Hormuz for almost two weeks, with a prolonged supply disruption catching market participants off guard. The seismic shock to the energy market has forced major oil-producing countries in the region to cut output, while some refiners have faced contract defaults. In the financial derivatives market, several volatility indices have surged to the highest levels since the Russia-Ukraine conflict. In response, algorithmic traders have ramped up their long positions to the limit, and as traders reduce risk exposure, options trading has been suppressed. (Jinse)