Hedge funds have increased their bullish positions on US crude oil at the quickest rate since March, signaling a renewed conviction that geopolitical supply risks will keep energy prices elevated.
The surge in long bets comes as traders continue to price in the potential for further disruptions to global shipping routes and production flows.
The positioning shift reflects growing anxiety over supply constraints stemming from military activity in the Middle East, as well as ongoing tensions in the Red and Black Seas.
These regions remain critical chokepoints for global energy trade, and any escalation threatens to tighten supplies further, particularly for American crude which has seen increased demand as a safer alternative.
This aggressive buying by speculative funds adds to the upward pressure on oil markets, which have already seen sharp price jumps in recent trading sessions.
The market is effectively repricing the risk of supply outages, with investors positioning for a scenario where geopolitical instability continues to outweigh broader demand concerns.