Hedge funds sharply increased their long positions in crude oil last week, seizing on geopolitical tensions as Donald Trump escalated pressure on Russia – a move that raised concerns about supply disruptions and fuelled a rally in oil markets, according to a report by Bloomberg.
The report cites data from ICE Futures Europe and the CFTC as showing that in the week ending 29 July, speculative net-long positions in Brent and West Texas Intermediate (WTI) jumped by nearly 40,000 contracts to 299,295, the largest weekly increase since mid-June.
The surge in positioning came after Trump issued a shortened deadline for Russia to agree to a ceasefire in Ukraine, while again threatening further economic penalties. The shift in tone reignited fears of reduced Russian oil exports and pushed crude prices to their highest levels in over a month.
The bullish momentum extended across refined products as well. Hedge funds and other speculators increased net-long bets on gasoil to a three-year high, and US diesel futures and options net-longs rose to their highest in nearly four years, amid persistently tight inventories and global refinery constraints.
For macro and commodity-focused hedge funds, the renewed volatility in oil markets presents fresh opportunities. Traders are leaning into long positions not only on crude itself, but across the refined fuel complex, betting that further geopolitical risk — combined with structurally tight diesel supplies — will continue to support price strength.
