Oil Prices Retreat, But the Strait of Hormuz Remains the Wild Card

Trump’s latest comments cooled oil prices, but talks over ending the Strait of Hormuz blockade could prove far more consequential. Hedge Funds Pile Back into Oil as Chokepoint Risks Return – The signing of the US-Iran Memorandum of Understanding triggered one of the largest hedge fund sell-offs for crude futures and options, however the closure of the Strait of Hormuz (and now of Bab el-Mandeb) has made bullishness in vogue again. – Net positions held by hedge funds and other money managers in ICE Brent futures and options rebounded to the equivalent of more than 192 million barrels, a 2-month…