Bullish bets on Brent return to mid-August levels

*Investors bullish on Brent.

*Investors bullish on Brent.

19 September 2016 — Hedge funds and other large money managers have raised their weekly bets on rising crude oil prices, with net long positions in Brent stabilizing around levels seen in mid-August when the market got the first indications of a possible OPEC output deal.

Investors increased their net long positions in Brent by 8,192 contracts to 359,173 lots in the week to Sept. 13, ICE reported.

That is pretty much in line with the levels of 354,915 lots seen in the week to Aug. 16 but still far off record highs of over 419,000 lots seen at the end of April.

Bullish bets on Brent have risen and then fallen again since mid-August, mainly driven by concerns over whether OPEC and non-OPEC Russia can clinch a meaningful deal to stabilize the oil market, amid returning supplies from Libya and Nigeria and a worsening global oil glut.

OPEC and non-OPEC Russia are due to meet next week in Algiers.

*Dmitry Zhdannikov; Editing – Susan Fenton – Reuters

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