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Rory Johnston highlights that Brent crude net speculative positioning experienced its largest weekly pullback since the start of the war.
He adds that much of the recent crude price pullback could be linked to a rationalization of elevated speculative positioning levels. Johnston is awaiting confirmation from the CFTC at 3:30 p.m. ET.
Earlier this year, Rory Johnston noted oil markets often overreact to geopolitical risk and called recent reactions surprising given initial market conditions, according to a previous post. Brent crude December futures had recently touched crisis highs, with tighter inventories driving prices higher in long-dated contracts, Johnston reported in another article. The recent adjustment in speculative positioning comes after these heightened levels.