Money managers cut their bullish exposure on Brent crude by 11 percent during the week of December 10, according to new data from the ICE Exchange Europe. Gas oil longs were added despite the negative price action during the week in question.
The reduction in speculative positioning on Brent crude oil was driven by longs being scaled back and shorts being added, most likely in response to renewed focus on the spread contraction to WTI crude. During the week in question, Brent's premium over WTI dropped by 5.7 USD/barrel and this would have attracted some new short sellers into Brent crude.
The net-long in gas oil rose to a nine-month high despite the weak price action during the reporting week.