Hedge funds ramped up bullish positions on Brent crude last week to their highest level in over a month, as a temporary easing of US-China trade tensions renewed investor optimism across the commodity complex, according to a report by Bloomberg.
Then report cites data from ICE Futures Europe as revealing that the money managers boosted their net long exposure in Brent by 53,586 contracts, bringing total bullish bets to 151,144 lots, marking the most aggressive long positioning since early April.
The move reflects a broader rebound in risk sentiment following a diplomatic thaw between Washington and Beijing. The de-escalation of tit-for-tat tariffs helped revive confidence in the global growth outlook, lifting oil prices and prompting hedge funds to reduce bearish exposure. Short positions in Brent fell to a three-week low, signalling that macro and CTA funds are positioning for continued upside momentum.
The renewed long bias in Brent comes even as positioning in US crude diverged. Hedge funds trimmed bullish bets on WTI, as concerns linger over faltering global demand and signs of softening in US export flows. The divergence highlights a growing preference among directional managers for Brent as a more stable proxy for global oil sentiment, particularly amid continued uncertainty around American energy policy and infrastructure constraints.
