Funds bet big on Brent and crude as Iran deal lags

London (Quantum Commodity Intelligence) - Funds built huge bullish bets in crude futures and options in the week to June 8, extending the previous-week's move as fears of fresh Iranian barrels hitting the market eased, data from the Commitment of Traders report showed for ICE and CME.

Net-length in WTI futures and options rose 27,850 lots over the week to June 8, to hit 410,000 lots - the highest in almost three years and the biggest weekly rise in net longs in more than seven months.

The rise comes as the spread between WTI and Brent has narrowed, reflecting greater demand in the US as the country's economic recovery outpaces others internationally.

On that note, bullish bets on international crude prices also rose, with net length rising 23,500 lots in Brent crude futures and options to 290,745 - to reach the highest level in four weeks and the biggest weekly build since January.

The move followed headlines suggesting a new nuclear deal with Iran was unlikely until September and October.

In European low sulfur gasoil futures and options, where net length has been surging, another 5,250 lots were added to the net length as the total length of 157,590 lots approaches a three-year high.

Meanwhile, funds made little changes in heating oil and RBOB gasoline on Nymex, cutting 1,295 lot of net-length in the former and 871 lots of net-length in the latter.