Oil Traders Shrink Exposure as Bullishness Wanes | OilPrice.com
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Breaking News:
Crude oil traders have been reducing their exposure to contracts for the commodity in a sign that sentiment is yet again changing.
Net-long bets on West Texas Intermediate fell for the fourth week in a row, reaching the lowest since last October, Bloomberg reported today, citing data from the ICE stock exchange and the U.S. Commodity Futures Trading Commission.
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The change was caused both by a decline in net-long position and an expansion in net-short ones, the report noted, as a potential peace deal for Ukraine, a resumption in oil exports from Kurdistan, and tariffs combine to sour optimism.
The U.S. and Russia indicated earlier this month they are both willing to negotiate an end to the war, which would entail the lifting of Western sanctions on Russia, as suggested by Secretary of State Marco Rubio.
Meanwhile, the Iraqi government said on Saturday it had restarted crude oil exports from the northern region of Kurdistan after more than a year’s suspension amid a dispute with Turkey, which received the Kurdish oil flow to then move it into international markets.
The news followed reports that the U.S. had pressured Baghdad to restart the shipments. The ultimatum was simple: restart Kurdish oil exports through the shuttered pipeline—or else suffer the same fate as Iran with regard to U.S. sanctions.
There has been some concern that the restart could raise OPEC+ compliance questions, as Iraq is under quota pressure. However, analysts suggest it may simply shift Kurdish oil from smuggling routes to legal exports rather than adding fresh supply.
Both developments, however, have been bearish for oil prices, as has Trump’s tariff offensive against trading partners. Perhaps the part most directly related to oil was the additional 10% tariff on all Chinese imports that triggered a response by Beijing in the form of a 10% tariff on U.S. crude oil imports into the world’s biggest importer.
By Charles Kennedy for Oilprice.com
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