In the week ending 3 June, crude oil futures (Brent and WTI) saw a rangebound performance. Money managers increased their length for the fifth consecutive week, rising by 41.1mb (+9%), with overall long positions sitting at their highest level since early April. Meanwhile, shorts declined by 7.2mb (-3%), driven by liquidations in WTI. The long:short ratio increased from 2.18:1.00 to 2.46:1.00, and sits at the 18th percentile for all weeks since 2013. Combined open interest fell by 32mb over the week (-0.7%), but levels are 9% higher than the start of the year.
Various factors have weighed on crude sentiment, resulting in a bullish tone from money managers. OPEC+ has stated its intention to continue its output hike in July, raising production by 411kb/d, which was in line with market expectations. There is a clear focus on market share, which likely largely benefits Saudi Arabia. There were rumours of an even larger unwind on the Friday before OPEC’s weekend meeting, so the announcement placated fears of further oversupply.
