Hedge Funds Boost Bullish WTI Bets Most in a Year on Sanctions

(Bloomberg) -- Hedge funds increased their bullish positioning on US crude by the most in more than a year on the prospect of sanctions on Iranian and Russian oil and the potential for additional Chinese economic stimulus.

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Money managers boosted their net-long position on West Texas Intermediate by 57,215 lots to 161,201 lots during the week ended Dec. 17, according to the Commodities Futures Trading Commission. That’s the biggest gain since September 2023.

The change came after oil prices rallied on the prospect of sanctions that would reduce supplies of Russian and Iranian oil, countering projections for a supply glut in 2025. On the demand side, bolder stimulus plans in China bolstered the outlook for the world’s biggest crude importer.

An increase in WTI long-only contracts to the highest in about four months pushed hedge funds’ stance on the US benchmark closer to Brent’s bullish positioning, which increased to 184,841 lots.

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