Hedge funds expanded bullish oil positions as Brent net longs reached a multiyear high, while U.S. crude optimism and volatility rose during near-stalled Strait of Hormuz traffic.
Hedge funds raised net long Brent crude positions by 65,438 contracts to 351,032, the highest level since February 2020. Bullish positioning in U.S. crude also climbed to an eight-month high as traffic through the Strait of Hormuz was nearly stalled for about two weeks. Volatility gauges rose to their highest level since the Russia-Ukraine conflict, reflecting heightened market tension tied to disruption risks around a key global oil shipping route.