• 3 minutes War for Taiwan?
  • 7 minutes How China Is Racing To Expand Its Global Energy Influence
  • 10 minutes Is it time to talk about Hydrogen?
  • 2 hours U.S. Presidential Elections Status - Electoral Votes
  • 34 mins “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 hours Tesla Semi
  • 3 hours WTI / ​​​​​​​Price Forecasting 
  • 11 hours Mail IN Ballot Fraud
  • 18 hours “Did Authorities Do Enough To Find Out Why Oil Prices Went Negative?” By Irina Slav – Nov 26th
  • 8 hours “Consumers Will Pay For Carbon Pricing Costs” by Irina Slav
  • 2 days Biden's Green New Deal- Short Term - How Will He Start to Transition Out Of Crude?
  • 2 days America Could Go Fully Electric Right Now
  • 4 hours Russia loses its chance to capture the EU gas market
  • 18 hours Deceptions Revealed about the “Nord Stream 2 Pipeline” and Germany
  • 2 days Saudi Arabia Seeks to Become Top Hydrogen Exporter

Breaking News:

Gold Set For Its Worst Month In 4 Years

Iran's Leading Nuclear Bomb Expert Assassinated

Iran's Leading Nuclear Bomb Expert Assassinated

Dr. Mohsen Fakhrizadeh, known as…

Why OPEC Is Worried About The UAE

Why OPEC Is Worried About The UAE

With its recent update in…

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

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News