WTI Shorts Hit Five-Month High at 102,895 Contracts as Hormuz Blockade Ends
CL•Hedge funds added 10,866 WTI futures shorts last week, raising total bearish bets to 102,895 contracts—the highest since January—as traders expect higher Iranian exports from eased U.S.-Iran tensions. A U.S.-Iran nuclear deal and lifted Hormuz blockade sent a record 19 million barrels through the strait, intensifying supply pressure.
1. Hedge Funds Increase Bearish WTI Bets
Money managers added 10,866 gross short positions in WTI futures during the week ended June 16, pushing total bearish bets to 102,895 contracts—the largest short position since late January. This surge reflects expectations that a preliminary U.S.-Iran peace agreement and sanctions waivers will boost Iranian oil exports and ease supply constraints.
2. U.S.-Iran Nuclear Deal Lifts Hormuz Blockade
President Trump’s announcement of a nuclear agreement with Iran ended the U.S. naval blockade of the Strait of Hormuz, allowing commercial traffic to resume. The deal includes long-term inspections and sanctions relief, with 19 million barrels flowing through the strait on Monday—a new daily record that immediately weighed on oil prices.
3. Market Implications for Crude Futures
Traders are concerned that returning Middle Eastern barrels could outpace demand growth, particularly as Chinese crude imports remain weak. Bearish sentiment also extended to refined products, with Nymex diesel shorts rising to 22,214 contracts—the highest since early March—underscoring broad downward pressure on energy markets.
