Hedge Funds Sell 95 Million Barrels of Brent Futures as U.S.-Iran Deal Aims to Reopen Strait of Hormuz

Hedge funds and other money managers sold the equivalent of 95 million barrels in ICE Brent futures and options during the seven days ending June 16. The seven-day period included the announcement of a memorandum of understanding between the United States and Iran to terminate their war and reopen the Strait of Hormuz.

Fund managers sold Brent at the fastest rate for more than a year and at one of the fastest weekly rates since the coronavirus pandemic, according to @JKempEnergy reported.

The sales reflect a sharp shift toward a bearish stance on crude oil prices following the memorandum. @JKempEnergy reported that investors have become very bearish about the outlook for crude oil prices after the conclusion of the memorandum.