Flux Markets | Bearish Buildup Skip to main content

Bearish Buildup

Brent speculative shorts rise for seven consecutive weeks on increasing optimism for Strait reopening; shorts rise across refined products
Published: May 25, 2026
Written by:
Vincent Wu

Vincent Wu

Research Associate, Flux
Vincent Wu
13 page report
Share

In the week ending 19 May, money managers adopted a risk-on attitude to Brent futures.

  • Given the larger proportional increase in shorts, this pressured the long:short ratio from 4.84:1.00 to 4.59:1.00 over the week. Short positions have risen for seven consecutive weeks, which marks a 74% increase over this period. Money managers are increasingly discounting the geopolitical risk premium, and anticipating a peace deal that would lead to the reopening of the Strait of Hormuz.

Premium Content

To continue reading this page, please login or find our about our subscription options.

Written by

Vincent Wu

Research Associate, Flux
Vincent Wu

Related News

Brent Declines as Trump Cancels 20% Fee

Brent eases as Trump confirms Iran shipping blockade. China imports slump, while Brazil and Nigeria adjust fuel policies.

Open Hormuz, Close Hormuz

Renewed US-Iran hostilities lift front Dubai spreads out of contango; selling flows focused in Q4 Brent/Dubai

Feeling The Pressure

Dated Brent stays under pressure as buy-side remains absent. CFDs sold heavily, while paper rallies faded after short covering.

Brent rallies to $86.90

US-Iran conflict escalates with fresh strikes, shipping attacks and Hormuz blockade; OPEC cuts 2026 demand outlook, Venezuela output steady.