Money Managers Cut Brent by 37,541 Contracts and WTI by 24,312 Contracts in Week Ending July 23

In the week ending July 23, money managers decreased their net-length in Brent crude oil futures and options by 37,541 contracts, bringing the total to 146,349 contracts. This reduction was primarily due to a decline in long-only positions, which fell by 30,417 contracts, while short-only positions increased by 7,124 contracts. Conversely, other reportable accounts saw a net-length increase of 16,141 contracts. In the same week, WTI crude oil futures and options experienced a reduction in net-length by 24,312 contracts, resulting in a total of 239,237 contracts. Long-only positions in WTI decreased by 20,565 contracts, while short-only positions rose by 3,747 contracts. Other reportables in this category also increased their net-length by 18,148 contracts. Analysts noted that the selling pressure in WTI was significant but smaller compared to Brent, leaving the market just above neutral, with concerns about potential overdone downside selling in future cycles.