Hedge Funds Boost WTI Short Bets by 10,865 Lots as US-Iran Peace Deal Nears
Updated
Updated · Bloomberg · Jun 22
Hedge Funds Boost WTI Short Bets by 10,865 Lots as US-Iran Peace Deal Nears
3 articles · Updated · Bloomberg · Jun 22
Summary
Gross short positions in West Texas Intermediate rose by 10,865 lots in the week ended June 16, lifting hedge funds' bearish bets to 102,895 lots.
That total is the highest for short-only WTI positions since Jan. 27, signaling traders expect a preliminary Washington-Tehran peace memorandum to ease supply risks.
The bet hinges on stronger Middle East oil flows through the Strait of Hormuz, a key route whose disruption had supported prices during the US-Iran war.
The positioning marks a sharp shift from war-driven supply fears toward expectations of looser crude balances if the deal advances.