Hedge Funds Add Bullish Oil Bets as Geopolitical Risks Return

Hedge funds turned bullish on oil at the fastest pace in three months as geopolitical unrest in key producing regions of the world revived the risk premium in crude prices.

Money managers increased their net-long stance on West Texas Intermediate by 26,247 lots to 38,904 lots in the week ended Sept. 16, the largest gain since June, accordingBloomberg Terminal to the US Commodity Futures Trading Commission. The net increase was largely driven by a drop in bearish bets in both US and Brent crude. Short-only wagers on Brent tumbled to a six-week low, dataBloomberg Terminal from ICE Futures Europe show.