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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
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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.

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