Oil longs take a breather

Speculative investment in oil futures cooled somewhat last week with new short positions coming into both Brent and WTI futures. Both benchmarks experienced a reduction in net length as some longs also came out of the market but we note both Brent WTI are heavily weighted to long positions.

Oil prices have hewed to a very narrow range, not offering much of a reward to speculative investors and setting up downside risks if these long positions are unwound in a hasty or panicked manner.

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