Oil Speculators Reduce Bets Amid China Worries

FuelNuts & Bolts
Written By Jennifer Joslyn

Oil traders have cut their net long positions in Brent and WTI due to concerns over China's economy. A recent rocket attack on the Golan Heights briefly boosted prices but couldn't overshadow the China-related fears. At the upcoming JMMC meeting, OPEC+ is expected to stick to its current production policy.

Last week, speculators reduced their net long positions in ICE Brent by 37,541 lots, leaving a net long of 146,349 lots as of July 23. WTI Crude saw a similar reduction, with net long positions dropping by 24,312 lots to 239,237 lots. These moves were driven by worries about Chinese demand, affecting not just oil but also metals.

Oil prices briefly rose on Monday following the Golan Heights attack, but concerns about global demand, especially from China, kept gains modest. Market watchers are also eyeing the August 1 JMMC meeting, where no changes to production policy are expected. OPEC+ plans to maintain current cuts until at least September, with potential adjustments later based on market conditions.

Read more at Oil Price.

WHY IS THIS IMPORTANT?

In transportation and logistics, fuel costs are a big deal. Changes in oil prices can directly impact your expenses. If oil traders are nervous about China's demand, it could mean fluctuating prices ahead, affecting your budgeting and operations.

🔥 OUR HOT TAKE?

Oil market jitters over China could shake up fuel costs – stay agile and keep an eye on your fuel budget! OPEC+ stability might help, but volatility is the name of the game right now.

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Jennifer Joslyn
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