Hedge funds have significantly increased bullish wagers on oil, marking the largest surge since June, as signs of tight US inventories and ongoing geopolitical risks drove market sentiment, according to a report by Business Times citing data from ICE Futures Europe and the CFTC.
Money managers boosted their combined net-long positions in West Texas Intermediate (WTI) and Brent by 54,183 contracts to 245,650 lots in the week through Tuesday, lifting WTI net longs from an 18-year low.
The surge in bullish positioning came just ahead of reports that OPEC+ may consider accelerating output increases, which pushed futures lower midweek. Market attention now turns to the alliance’s Sunday video conference, with some investors preparing for Brent to dip below $60 a barrel should a substantial supply boost be announced.
Fund flows were supported by ongoing uncertainty over Russian crude availability, as US diplomatic pressure in Ukraine shows limited progress. Comments from German Chancellor Friedrich Merz, confirming a key Zelenskiy-Putin meeting is off the table, further heightened supply concerns.
US stock data reinforced the tightness theme, with crude inventories at Cushing, Oklahoma — the country’s main storage hub — declining for the first time in eight weeks, while national crude stocks fell by 2.4 million barrels.
