Vincent Wu
Research Associate, Flux
CFTC Weekly: Shorts Out
Fund shorts liquidate Brent and WTI positions, open interest declines for the consecutive week
Published: March 16, 2026
Written by:
Vincent Wu
13 page report
In the week ending 10 Mar, Brent crude futures saw a decline in open interest for the second consecutive week, where levels fell by 99mb (-3%) w/w. There was a significant liquidation of short managed money positions, falling by 24mb (-23%) w/w, to the lowest level since April 2024. The long:short ratio percentile rose from the 40th to 61st for all weeks since 2013.
- Similar to Brent, open interest fell for a second consecutive week in WTI futures. There was another significant rise in short swap positions over the week, by 13%. Overall, short swap positions have risen by 27% over the past two weeks, which suggests greater producer hedge selling on the back of higher flat price. While long managed money positions saw a modest 1.4% increase w/w, shorts declined by 17.7%, or 21.0mb.
- Brent futures saw incredible intraday volatility on Monday 02 Mar, as prices opened at $116/bbl but saw a $35 swing over the day, closing below $90/bbl. However, prices have gained over the week from 03 to 10 Mar from $82 to $91/bbl, as markets price in a geopolitical risk premium and supply disruption from the Middle East conflict and the closure of the Strait of Hormuz. Combining price action and money manager positioning, the bullish sentiment was likely reinforced by short covering flows.
- ICE gasoil futures saw a second consecutive week of open interest decline, falling by 96mb (-10%), with levels at the lowest since February 2025. Prod/Merc positions declined by over 10% for both long and shorts. Money managers were risk off, with declines in both long and short positions. But the greater proportional decline in shorts saw the long:short ratio rise from 2.92:1.00 to 3.39:1.00 over the week.
- RBOB futures open interest declined for the second consecutive week, by 5%. Money managers accelerated their trimming of long positions, falling by 11% (-10mb) over the week. Short positions declined for the sixth consecutive week, and the eighth in nine weeks. At just 5.5mb, outright short positions are at 2-year lows, rendering prices vulnerable to a downside correction.
- In ULSD Heating Oil, open interest declined for the third consecutive week, falling to the lowest level since May 2023. There was a significant decline in money manager positions, with longs and shorts falling by 10mb (-23%) and 7.5mb (-33%) respectively.
- Funds were risk off in Natural Gas (Henry Hub) over the week, as longs and shorts fell by 1.7% and 6.6% w/w, respectively.
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