Funds shed more length in ICE Brent

London (Quantum Commodity Intelligence) Funds have cut bullish bets in Brent on the ICE exchange for the third week in a row, data from the Commitment of Traders Report shows.

The managed money category cut 18,549 long lots in Brent futures and options over the week to April 6, adding to the 2,073 lots cut over the week to March 30 and the 36,650 lots cut over the week to March 23.

Funds also added 1,819 short lots in Brent futures and options over the week to last Tuesday.

Speculative net-length fell 20,278 lots to 269,501 lots, its lowest this year, as funds reacted to the decision by OPEC and their allies to raise crude supplies in this quarter at a time when concerns over the speed of the recovery in global oil demand has been thrown into doubt by the third wave of Covid-19.

U.S gasoline stocks rose and implied demand for the road fell last week, according to data from the Energy Information Administration showed last Wednesday.

But there was a more muted reaction in European distillates.

Funds cut 1,509 long lots and also 509 short lots in Low Sulfur Gasoil futures and options over the week to April 6.

Speculative net-length fell 1,010 lost over the week.