Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
Iran Conflict 2026
10AUG

WTI and Brent managed money both net long

3 min read
23:27UTC

The CFTC's 12 May Commitments of Traders report showed NYMEX WTI managed money net long +80,331 contracts and NYMEX Brent Last Day managed money net long +13,812 contracts as of 28 April.

ConflictDeveloping
Key takeaway

The Brent long faces larger reversion risk than the WTI short if Hormuz physically clears.

The CFTC Commitments of Traders disaggregated report dated 12 May 2026 (covering positions as of 28 April) showed NYMEX WTI managed money net long at plus 80,331 contracts and NYMEX Brent Last Day managed money net long at plus 13,812 contracts⁠1. Speculative money was long both benchmarks through the last week of April.

The WTI book was nearly six times the Brent Last Day book, and neither showed a long-Brent, short-WTI split. Speculators carried that length into May, the same pricing environment that took Brent through $110 a barrel by 18 May.

With both books long, a benign Hormuz headline hits speculative length on both benchmarks rather than on one leg of a spread. ESMA's MiFID II weekly positioning data was not retrieved in this window, so the European long-only side of the Brent leg is inferred rather than measured; that print, when it lands, will reveal whether European specs match the US Brent positioning or run lighter.

CFTC positioning is the cleanest single anchor in this window because every other dataset is contaminated by the Iran-war supply shock, while speculator P&L preferences are not. Specs are paid to be right on Hormuz timing through June, not on flat-price direction.

Deep Analysis

In plain English

Every week, the US Commodity Futures Trading Commission (CFTC) publishes a report showing which way big investors, such as hedge funds and asset managers, are betting on oil prices. Going long means betting prices will rise; going short means betting they will fall. On 28 April, big investors were betting on rising prices in both Brent Crude (the European benchmark) and WTI Crude (the American benchmark), with a much larger bet on WTI.

Deep Analysis
Root Causes

Managed money held net long positions in both NYMEX WTI and Brent Last Day on 28 April, so the CFTC data do not show a short-WTI trade on OPEC+ unwind barrels.

With Gulf sour crude inaccessible at normal freight rates, European physical buyers and speculative funds have added Brent long positions as insurance against a sustained disruption.

What could happen next?
  • Risk

    The Brent net long (+58,259 contracts) faces an asymmetric reversion if Hormuz mine-clearance news arrives before the 7 June OPEC+ ministerial, compressing Brent-WTI simultaneously with the OPEC+ supply increase.

    Short term · 0.75
  • Consequence

    The WTI-Brent positioning divergence signals that Atlantic-basin crude traders are pricing OPEC+ unwind barrels as primarily WTI-linked supply, which narrows the Brent premium to WTI as June physical supply rises.

    Immediate · 0.7
  • Risk

    Without ESMA MiFID II data, the European-side contribution to the Brent long remains inferred; the actual total speculative Brent long could be materially larger than the CFTC-reported figure alone.

    Immediate · 0.8
First Reported In

Update #1 · GL 134B out, Rotterdam dark, OPEC+ pending

CFTC· 18 May 2026
Read original →
Different Perspectives
Office for Budget Responsibility
Office for Budget Responsibility
The OBR's 28 October forecast assumed $82 oil for 2026 and 2027, from market prices for the ten working days to 19 August, and blamed dearer wholesale energy on the war without naming Iran. It expects CPI inflation close to 4% in early 2027 even at that price.
Hengaw, Kurdish rights group
Hengaw, Kurdish rights group
Hengaw reported the 3 November hangings of Amirhossein Maleki and Amirhossein Ebrahimi in Isfahan, saying Ebrahimi was tortured into confessing and that nine of 12 people sentenced to death in the case have now been hanged. Iran's judiciary holds that the defendants killed members of the security forces.
FINTRAC, Canada's financial intelligence unit
FINTRAC, Canada's financial intelligence unit
FINTRAC worked with the US Treasury on the 6 November designation of eight money services businesses in British Columbia, Ontario and Quebec. Treasury says the businesses still operate, some under new names, so closing them falls to Ottawa.
Abdul Qadir al-Dakhil, Governor of Nineveh
Abdul Qadir al-Dakhil, Governor of Nineveh
Al-Dakhil cancelled three Mosul International Airport contracts on 7 November over alleged links to armed groups, after meeting Prime Minister Ali al-Zaidi in Baghdad. He named no group or company, and said the contracts will go to international companies.
Kuwait
Kuwait
Kuwait condemned the Houthi missile fired towards the Madinah region on 5 November and restated its support for Saudi Arabia, the Qatar News Agency reported. Its state tanker company, Kuwait Oil Tankers Company, is among the Gulf state fleets on Iran's expanded Hormuz list.
Scott Bessent, US Treasury Secretary
Scott Bessent, US Treasury Secretary
Treasury designated an alleged Chandigarh false-flag network on 4 November and eight Canadian exchangers on 6 November, while State sanctioned alleged MANPADS intermediaries. None of the actions touches an oil buyer; they target the paper, cash and procurement around Iran's trade.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.