Funds bearish Brent and bullish WTI

London (Quantum Commodity Intelligence) - Changes in speculative net-interest diverged in Brent and WTI last week, the Commitment of Traders reports showed.

Funds cut around 27,500 lots of net-length in Brent futures and options, but added around 11,500 lots of net-length in WTI.

In Brent, funds cut long positions for the third week in a row on the ICE exchange, reducing exposure by almost 18,500 lots, while at the same time increasing short lots, also for the third week in a row, by around 9,000 lots.

Open interest in Brent fell over the week.

As a percentage of open interest, length held by funds was little changed at 11.7%, but the percentage of shorts held by funds increased to 3.36%, up from 2.94% a week earlier.

In WTI, funds added 17,000 long lots and also added around 5,500 lots over the week to May 25, partly reversing the 16,200 loss in net-length a week earlier.

As a percentage of open interest, fund length increased a percentage point to 16, and the percentage of shorts nudged up to 2.5%.

The spread between Brent and WTI narrowed to its lowest spread of the year on May 28.

Meanwhile, funds also cut net-length in Low Sulfur Gasoil futures and options for the first time in five weeks, down 8,000 lots after cutting 8,500 long lots and 500 short lots on the ICE exchange.