International oil prices will further decline? Hedge funds cutting bullish bets.

Hedge funds are no longer as optimistic about the outlook for oil, reducing their net bullish bets, which is a further sign of the market softening. Net long positions for WTI crude oil have dropped for the fourth consecutive week to their lowest level since October of last year. The corresponding benchmark for global Brent crude oil has seen its biggest drop since December of last year, marking the third consecutive decline. Data from ICE Futures Europe and the Commodity Futures Trading Commission show that these changes were driven by a decrease in long positions and an increase in short positions. In recent weeks, oil prices have been sold off due to various driving factors, with traders concerned that U.S. tariffs and negotiations related to the Russia-Ukraine conflict may impact market dynamics. Additionally, exports from the semi-autonomous Kurdish region of Iraq may resume, even though OPEC+ may delay their planned production increase. WTI crude oil ended a five-week consecutive decline last Friday, marking the longest downward trend since the end of 2023. Warren Patterson, head of commodity strategy at the Dutch international group, commented: "The latest positioning data reflects recent negative sentiment." He mentioned concerns regarding trade and tariffs, as well as efforts to reach an agreement between Russia and Ukraine. Meanwhile, total open interest for U.S. crude oil has also decreased, remaining close to its lowest level in about three months even after a slight increase. With traders feeling disoriented by the numerous executive actions taken by President Trump, investors have been withdrawing from the oil market.