The Dec’24 Brent futures contract initially found strength in the week ending 24 Sep, trading around low $74/bbl levels from 19-23 Sep, before selling off in the afternoon of 23 Sep down to almost $72.80/bbl amid news of Libyan exports rebounding to 700kb/d and China’s Russian oil imports jumping 26% m/m in August. In line with this bearish sentiment and price volatility, Onyx’s weekly CFTC COT predictor anticipates the withdrawal of speculative long positions in Brent alongside a reduction in shorts for the week ending 24 Sep. Notably, we anticipate long and short prod/merc positions in Brent futures to decline by 97mb and 101mb w/w, respectively.
