Key facts
- Money managers reduced net long positions in WTI crude futures by 7,257 lots.
- Net long positions in ICE Brent crude oil futures were reduced by 11%, or 20,361 lots.
- This is the second consecutive weekly decline in speculative positions for both WTI and Brent.
- Analysts cited limited conviction in a sustained price rally despite geopolitical supply risks.
- Crude oil prices saw a rebound early this week due to geopolitical events.
Money managers have scaled back their bullish positions in both WTI and Brent crude oil futures for a second consecutive week, according to the latest Commitment of Traders (COT) data. In the reporting week ending August 4, portfolio managers decreased their net long position in NYMEX WTI by 7,257 lots to 101,050 lots. Simultaneously, net long positions in ICE Brent crude oil futures were reduced by 11%, or 20,361 lots, bringing the total to 164,722 lots.
This pullback in speculative positioning comes despite persistent geopolitical supply risks, including the ongoing situation concerning the Strait of Hormuz. Analysts from ING and Saxo Bank have noted a lack of strong conviction for a sustained price rally, with Ole Hansen of Saxo Bank highlighting that positioning signals limited confidence in upward price movement.
However, crude oil prices began the current week with gains. This rebound was influenced by Iran issuing six demands for a peace deal with the United States and claims from the Houthis of a strike on an Aramco refinery in Jazan. As of 10:00 a.m. ET, Brent front-month futures were up 2.70% at $85.81, and WTI Crude was trading 2.69% higher at $80.28.