Hedge funds slashed bullish positions on oil at a record pace last week as US President Donald Trump’s aggressive tariff measures rattled energy markets and cast a shadow over global demand, according to a report by Bloomberg.
In the week ending 8 April, net-long positions on Brent crude were cut by 162,344 contracts to 155,838 — the largest weekly decline since data began in 2011, according to ICE Futures Europe. Meanwhile, long-only bets on West Texas Intermediate (WTI) fell to their lowest levels since 2009, CFTC data shows.
The dramatic reversal came as the oil market absorbed a one-two punch: Trump’s tariffs on key trading partners, including China and India, were announced just hours before OPEC+ confirmed plans to boost output. The combination of weakened demand outlook and rising supply triggered a wave of selling. WTI futures have dropped around 14% in April, briefly hitting their lowest levels since 2021.
Just a week prior, hedge funds had ramped up their bullish exposure, lifting long positions in Brent to an 11-month high and pushing WTI longs to six-week peaks. That optimism unraveled swiftly in the face of heightened geopolitical uncertainty.
The sudden about-face reflects growing investor anxiety over a potential recession and weakening global growth. Traders have flooded into bearish contracts at unprecedented levels, while oil consumers have rushed to lock in prices amid rising volatility. Analysts say the shift underscores the fragility of sentiment in commodity markets highly sensitive to macro and policy shocks.
The most recent positioning data, notably, does not yet fully capture the effects of Trump’s subsequent 90-day tariff delay or his decision to hike duties on Chinese imports to 145% — both moves announced after the reporting period closed. Further volatility is expected as traders react to these developments in the weeks ahead.
