Hedge funds scaled back their net-long position in Brent crude by 13,995 contracts during the week ending February 4 according to the ICE Europe futures exchange. This left the net-long at 84,276 contracts of futures and options, the lowest level in 15 months. The change was driven by an equal reduction of longs and new additions of shorts which left the price exposed to any price strengths. This also helps to explain the rally seen on Friday when the established range was broken to the upside.
Source: IceExchange, Bloomberg and Saxo Bank
Source: IceExchange, Bloomberg and Saxo Bank
