Managed Money Brent net positioning has been a topic of interest in recent weeks, particularly amid the market volatility seen in August and early September. According to Commitment of Traders data, Managed Money positions in the Brent market saw a significant increase in buying activity during this period.

From August 4th to September 8th, Managed Money bought in four out of five weeks, cumulatively adding $9.3 billion to their long positions. This influx of capital was split evenly between long initiations and short covering, with a 30% allocation to each. As a result, the net length of Managed Money positions resided at an impressive 88% two-year rank during this time frame.

Notably, the November contract saw a remarkable surge of 25.7% during this period, further highlighting the confidence that Managed Money investors had in the Brent market. This buying activity can be attributed to downside reduction strategies, as Managed Money investors sought to capitalize on any potential declines in the market.

The increase in Managed Money positions in the Brent market is a testament to their confidence in the oil complex. As the global economy continues to recover from the COVID-19 pandemic, demand for oil is expected to rise, driving up prices. With Managed Money investors positioning themselves for potential gains, it’s clear that they see significant upside in the Brent market.