Oil Bulls Raise Stakes as Brent Net-Long Bets Extend Again

(Bloomberg) — Oil bulls are flexing their muscles, with money managers adding net long holdings in Brent for a fourth week as supply faces weather risks and consumption rises during the Northern Hemisphere summer.

Net long positions rose to just under 196,000 lots, up for the fourth longest week since April, according to futures and options data from ICE Futures Europe. The headline figure is now at its highest level since mid-May.

Brent prices have risen for the past four consecutive weeks, hitting their highest level since late April on Friday. The steady advance was driven by expectations of an increase in oil demand in the summer months, as well as falling US inventories and possible supply hits from bad weather. Prospects for easier US monetary policy also supported oil.

The corresponding net-bullish measure for diesel derivatives holdings in Europe fell slightly, however, while remaining at a relatively high level of just over 95,000 contracts. There was a greater increase in short positions than long positions for fuel. Data on US oil contracts from the CFTC is due later on Monday after a holiday last week.

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