ChainThink News, March 14: As the crude oil market enters its most volatile period in history, hedge funds' bullish positioning on Brent crude has reached its highest level in six years. Data from ICE Futures Europe for the week ending March 10 shows that money managers increased their net long positions in this global benchmark by 65,438 contracts to 351,032 contracts—the highest level since February 2020. Meanwhile, data from the U.S. Commodity Futures Trading Commission indicates that bullish bets on U.S. crude have risen to an eight-month high.

The ongoing Middle East conflict has brought maritime traffic through the Strait of Hormuz to a near standstill for nearly two weeks, catching market participants off guard with prolonged supply disruptions. The seismic shock in energy markets has forced major crude producers in the region to cut output, while some refiners have faced contract defaults. In financial derivatives markets, multiple volatility indices have surged to their highest levels since the Russia-Ukraine war began. In response, algorithmic traders have pushed long positions to maximum levels, while options trading has been suppressed as traders reduce their risk exposure. (Jinshi)