Article / 20 January 2014 at 13:14 GMT

Hedge funds cut bullish bets on Brent crude to a 14-month low

Head of Commodity Strategy / Saxo Bank
Denmark

By Ole Hansen

Hedge funds and other money managers cut their bullish exposure to Brent crude by 14,438 contracts to 85,658 during the week of January 14. This reduced the net-long to its lowest level since November 2012 and it also illustrates the increased uncertainty about the upside potential for Brent crude given the return of supplies from Libya and the continued rise in non-OPEC production. Gas oil net long was cut by one-fifth to 47,570 contracts.

Speculative positioning in Brent Crude and Gas oil
Source: Ice Exchange, Bloomberg and Saxo Bank

 Brent Crude speculative positioning
Source: Ice Exchange, Bloomberg and Saxo Bank

 Gas Oil Speculative positioning
Source: Ice Exchange, Bloomberg and Saxo Bank

 

(xcma)

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