Money managers and hedge funds have increased their net-long bets on ICE Brent futures, in the week to 3 February.

Speculators bought little over 31,000 lots as of last Tuesday, increasing net-long positions in Brent futures to over 278,000 lots – the largest position since April 2025.

Gross-long positions in Brent increased by more than 4,400 lots during the week, according to futures and options data from ICE Futures Europe.

The gain in net-long holdings reflects a drop in short covering, according to market analysts. “The bulk of the move was driven by short covering, with the gross short falling by 26,847 lots over the reporting week,” two analysts from ING Bank noted.

The development has renewed market concerns over geopolitical risks in Iran, as analysts note that prolonged defiance of US nuclear demands could increase the likelihood of military confrontation.

“Speculators remain nervous about being short in the oil market, given the ongoing uncertainty,” ING Bank analysts added.

Iran is the fourth-largest OPEC member, producing around 3.2 million b/d of crude oil. A US military intervention could threaten oil supply flows from the Middle East.

When speculators boost these positions, prices tend to rise. Conversely, when they reduce their net-long positions, oil prices typically decline, leading to a cycle where their actions can influence oil prices and the market.
Source: ENGINE, https://www.engine.online/news