Traders Became More Bullish on Oil As Middle East Risk Surged
Hedge funds and other portfolio managers began to include a higher risk premium in their oil price trades early this month as tensions in the Middle East spiked. Money managers significantly boosted their long positions in crude oil and other major petroleum product contracts in the weeks preceding Iran’s drone attack on Israel this past weekend. As the geopolitical premium jumped before the attacks, raising buying in oil futures contracts, it’s not so surprising to see Brent Crude prices lingering just below $90 per…