Looming US sanctions: Iran's oil woes rekindle hedge fund optimism

The Persian Gulf nation shipped just under 2.1 million barrels a day of crude and condensates in August

A looming shortage of Iranian oil supplies has hedge funds switching gears.

Money managers raised bets on rising Brent crude prices by the most since 2016 after three weeks of cutting wagers. The shift comes as Iran’s oil exports are shrinking, with key buyers in Asia taking fewer cargoes weeks before US-imposed sanctions take full effect.
 

“Hedge funds are starting to be constructive on oil again, which makes sense. We’re heading into these Iran sanctions, which is going to remove supply,” said Ashley Petersen, lead oil analyst at Stratas Advisors in New York. “The risks are to the upside, more so