• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 6 days America should go after China but it should be done in a wise way.
  • 2 hours Even Shell Agrees with Climate Change!
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 2 days World could get rid of Putin and Russia but nobody is bold enough
  • 3 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Breaking News:

OPEC Lifts Production in February

Oil Rises Ahead of Weekly Inventory Data

Oil Rises Ahead of Weekly Inventory Data

Preview Text: Crude continues to…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Hedge Funds Dump Oil After Middle East Tensions Ease

After the spike in oil prices in the first days of 2020 on the back of increased tension between the U.S. and Iran, money managers liquidated some of the long positions in WTI Crude in the week to January 14, as the Middle East scare subsided and portfolio managers turned their attention to fundamentals.

According to the weekly reports from exchanges compiled by Reuters columnist John Kemp, money managers sold the equivalent of 64 million barrels of WTI Crude futures, and a total of 99 million barrels worth of the six most closely watched and traded petroleum contracts.

The net long position—the difference between bullish and bearish bets—in Brent Crude remained basically unchanged in the week to January 14, according to Kemp’s estimates.

“Looking at the Commitment of Traders report, there was little change in speculative positioning in ICE Brent over the last reporting week. However NYMEX WTI saw significant liquidation, with speculators selling 62,636 lots over the reporting week, to leave them with a net long of 225,794 lots as of the 14th January,” ING strategists said on Monday.

At the end of December, money managers had amassed a sizeable bullish position amid expectations that the global economy would rebound this year and drive a rise in global oil demand growth. In the week to December 31, portfolio managers held the most bullish position in oil in nearly 15 months, according to Kemp.

At the start of 2020, oil prices jumped on the U.S. killing of Iran’s powerful military leader Qassem Soleimani, and then again on the Iranian retaliation several days later, when Tehran fired missiles at bases in Iraq that host U.S. troops.

Since then, the U.S. and Iran seem to have backed from the brink of war and speculators’ attention has returned to how global economic growth and global oil demand growth will fare this year.

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News