Hedge Funds Bet $18 Billion Against Brent Crude, Most in Decade
Hedge fund net short positions on Brent crude have surged to roughly $18 billion, the highest in at least ten years, with short bets more than tripling over the past three months.
Hedge funds have built up record bearish exposure to Brent crude oil, with net short positions reaching approximately $18 billion — the highest level in at least a decade. The figure has more than tripled over the last three months, according to positioning data.
In the week ending June 16, hedge funds and institutional investors sold $7.5 billion of Brent crude futures, the largest weekly sell-off since April 2025. New short positions accounted for roughly 80% of total sales during that week, indicating that fresh bearish bets — not the unwinding of existing longs — drove the move.
The selling marked the seventh consecutive weekly decline, bringing the cumulative outflow to $24.8 billion. The data raises the question of whether the short oil trade is becoming overcrowded.
Source: The Kobeissi Letter