Oil Traders Reduce Bullish Positions as Tankers Exit Strait of Hormuz
Hedge funds and other money managers cut their net long positions in petroleum futures and options by the equivalent of 44 million barrels during the week ending May 12. The reduction follows continued ceasefire talks between the United States and Iran and the passage of a small number of tankers through the Strait of Hormuz.
financialpost.comHedge funds and other money managers sold the equivalent of 44 million barrels in the six most important petroleum futures and options contracts over the seven days ending on May 12. The sales brought bullish petroleum positions to their lowest level since the first week of the conflict between the United States and Iran.
Investors reduced their net long exposure in petroleum markets as ceasefire talks between the United States and Iran continued. A small number of tankers were allowed to exit the Strait of Hormuz during the same period. The combined effect of the diplomatic developments and the limited tanker movements coincided with the reported reduction in speculative long positions.
Key Facts
Story Timeline
3 events- Week ending May 12
Hedge funds sold the equivalent of 44 million barrels in petroleum futures and options.
1 source@JKempEnergy - Recent days
Ceasefire talks between the United States and Iran continued.
1 source@JKempEnergy - Recent days
A small number of tankers were allowed to exit the Strait of Hormuz.
1 source@JKempEnergy
Potential Impact
- 01
Lower speculative long positions may reduce upward pressure on oil prices in the near term.
- 02
Continued tanker movements could support gradual normalization of oil supply routes.
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