Hedge funds are most bullish on crude oil since 2020.

According to ME News, on March 14 (UTC+8), as the crude oil market entered its most volatile period in history, hedge funds' bullish stance on Brent crude reached its highest level in six years. Futures and options data from ICE Futures Europe for the week ending March 10 showed that currency managers increased their net long positions in the global benchmark by 65,438 contracts to 351,032 contracts. This is the highest level since February 2020. Meanwhile, data from the U.S. Commodity Futures Trading Commission showed that bullish bets on U.S. crude oil rose to an eight-month high. The Middle East conflict has brought traffic in the Strait of Hormuz to a near standstill for nearly two weeks, and the prolonged supply disruption has caught market participants off guard. The seismic shock to the energy market has forced major crude oil producers in the region to cut production, while some refiners have defaulted on contracts. In the financial derivatives market, several volatility indicators have risen to their highest levels since the Russia-Ukraine conflict. In response, algorithmic traders have increased their long positions to the limit, while options trading has been subdued as traders reduce their risk exposure. (Jinshi) (Source: ME)