Money managers raised their net-long Brent crude futures and options positions in the week to Jan. 7 to the highest level since early May last year, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday, as investors eye-balled new sanctions and grew more optimistic around China’s economy.

The speculator group raised its futures and options position on the global benchmark, Brent, on the Intercontinental Exchange in the week to Jan. 7 by 39,944 lots to 226,859 during the period.

Hedge funds made their largest weekly increase in lots since Oct. 8.

Oil prices have strengthened in the week as investors grew optimistic about Chinese demand, while the threat of additional sanctions on Russia further supported prices, incentivising more bullish bets.

Shandong Port Group in China on Monday issued a notice banning U.S.-sanctioned oil vessels from its network of ports, three traders said, potentially restricting blacklisted vessels from major energy terminals on China’s east coast in a move that would tighten global oil flows.

Brent crude futures rallied nearly 3% to their highest in three months at Friday’s close, as investors digested a fresh round of U.S. sanctions targeting Russian oil producers, tankers, intermediaries, traders and ports, in a bid to hit every stage of Moscow’s oil production and distribution chains.
Source: Reuters