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Speculators ramped up their bullish bets on higher oil prices after OPEC+ jolted markets with a surprise production cut, posting the second-largest increase in net-wagers on record last week.
Net-long positions in Brent crude jumped by more than 73,000 contracts in the week to April 4, according to data from ICE Futures Europe. The only other time a bigger net-inflow occurred was in late-2016, which also followed unexpected output curbs from OPEC that ultimately led to the creation of OPEC+.
“We expect bullish capital flows to continue for the time being as the production cuts will drive storage draws,” Macquarie Group analysts including Vikas Dwivedi wrote in a note.
Brent surged as much as 8% after OPEC+ announced the round of output curbs of almost 1.7 million barrels a day, but prices struggled for further direction after the initial move last week. Futures were trading near $85 a barrel on Tuesday.
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