Hedge funds and money managers increased their bets on rising Brent crude oil for the first time since May, data released on Monday showed, although some say the shift is unlikely to last.
Net longs increased in the week to June 30 after falling for seven straight weeks, rising by 6,889 contracts to 198,693, Reuters reported citing data released by the InterContinental Exchange as saying.
But short positions also rose by 6% to 84,244 contracts, which analysts said showed the market is still searching for a clear direction.
"The fact that both the long positions and the short positions are rising shows there is a general level of uncertainty still on the direction of oil," said Ole S. Hansen, the Copenhagen-based head of commodity strategy with Saxo Bank.
However, Brent crude fell below $60 a barrel on Monday for the first time since April. Brent futures fell more than 2% to as low as $58.90 a barrel, while US crude futures tumbled almost 5% t to about $54.32.
