Speculators drastically increased their long net positions in Ice Brent and diesel futures last week, mainly driven by new long tickets while focused on short -term market tension. While crude oil balances should remain adjusted during the third quarter, a surplus is coming in the fourth quarter, which suggests that these speculative bets can soon face winds against, they point out the analysts of raw materials of ING, Warren Patterson and Ewa Manthey.
New long positions drive bets on rising oil
“The latest positioning data show that speculators increased their long net position in Ice Brent by 55,630 lots during the last week of reports, reaching 222,347 lots until last Tuesday. The movement was predominantly driven by new long positions that entered the market. Speculators seem to be more influenced by short -term dynamics than by the medium -term perspective.”
“The oil balance suggests that the market should be adjusted during the third quarter, before moving on to a large surplus from the fourth quarter. The data shows that speculators increased their long net position in ICE diesel in 12,064 lots, reaching 83,784 lots until last Tuesday.”
“This purchase is not surprising, given the support we have recently seen in the medium distilled market, with inventory data that aim at a voltage.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
