The latest Commitment of Traders (CoT) report, published on Wednesday by the ICE platform, shows that as of the end of last week investment funds have trimmed their net long positions (long minus short) to 101 million allowances.

Data indicates that, as of last Friday, speculative traders reduced their long positions by 1 million allowances, bringing the total to 130.6 million allowances, while short positions remained relatively stable at 29.6 million allowances.

This marks the first weekly decline in net holdings in a month, suggesting a modest shift toward selling rather than buying. However, the 1-million-allowance decrease is too small to signal a trend reversal and appears more like a short-term correction.

Speculative net long holdings remain firmly above 100 million allowances for the second consecutive week—close to the all-time high of 104 million allowances reached in 2021 during the Green Deal negotiations.

Such a large build-up in net long exposure, however, also raises the risk of a sharp unwinding. Any shift in macro sentiment, energy demand, or policy expectations could trigger an abrupt reversal, a dynamic often described as a “long squeeze.”