Hedge Funds were net buyers of 7,670 contracts of Brent crude futures and options during the last week of December. This was the fifth weekly increase out of the past seven weeks during which time the speculative long positions were raised by 53 percent in response to rising prices throughout November and December.
Brent crude net long rose to 136,611, the highest level since October 22. The increase which was triggered by additional new buying and a further reduction of short positions helps to explain the sell-off Thursday and Friday last week.
The speculative long in gas oil was lifted by 7,242 contracts of futures and options to 85,263 contracts.