Hedge funds increased short positions on Brent crude last week as oil posted its steepest weekly drop in over two years, with Middle East tensions easing and OPEC+ poised to boost output again, according to a report by Bloomberg.
Brent slipped below $68 a barrel after a 12% slide last week, while WTI hovered near $65. A US-brokered truce between Iran and Israel calmed fears of a supply shock, pushing speculative funds to bet further against prices, with OPEC+ delegates set to consider another 411,000 barrel-a-day supply hike for August when they meet on Sunday.
“The trajectory of Iran’s oil exports and its impact on Brent oil futures will likely move to the background in coming days as markets re‑focus on the OPEC+ supply decision,” said Vivek Dhar, an analyst with Commonwealth Bank of Australia.
Hedge funds are also watching signs of improving Chinese factory activity, although demand remains fragile. Futures remain on track for a 10% quarterly decline as traders brace for potential gluts and renewed tariff battles.
