BNO Borrow Market Tightens as Bearish Oil Bets Hit 57% of Float

Short sellers have been piling into BNO — the United States Brent Oil Fund — and the lending market is now reflecting that pressure. Short interest hit 57.1% of float on August 31. That is up 11.3% week-on-week and 35.2% over the past month.

The borrow market tells the same story.

Availability Drops as Shorts Crowd In

Availability stood at 103.8% on August 31. That sounds adequate, but context matters. As recently as August 18, availability was 247%. It has more than halved in two weeks.

The 52-week low for availability sits at 10.8% — hit during an earlier episode of heavy short demand. The current direction is firmly downward.

Cost to borrow rose 57% in a week to 2.60%. That is the highest since late August and reflects the cost of competing for a shrinking pool of lendable shares. At these levels, carrying a short position costs more each day — a headwind for bearish traders if oil stabilises.

Options Confirm the Bearish Skew

The put/call ratio for BNO is 0.127, up from 0.087 a month ago. The PCR z-score is 1.58 — elevated relative to the 20-day mean of 0.104. Put buying has picked up alongside the short interest surge. The two are moving in the same direction.

A Passive Holder on the Register

Carronade Capital Management filed a Schedule 13G on August 14, disclosing an 8.6% stake of 1.35 million shares. A 13G signals a passive position — no activist intent declared. As with all 13D/G filings, the stake reflects holdings as last disclosed; positions can change without further filings if the holder drops below 5%.

What to Watch

The ORTEX short score for BNO sits at 66.9, up from 62.3 on August 17 — a steady climb over two weeks. Three signals — rising short interest, a tightening borrow market, and elevated put activity — are now aligned. Any further decline in availability toward the 52-week low of 10.8% would signal the borrow squeeze is intensifying.

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• SI % of Free Float: 57.1% (Aug 31), up 11.3% w/w, up 35.2% m/m
• Cost to borrow: 2.60%, up 57% week-on-week
• Availability: 103.8% (Aug 31), down from 247% on Aug 18; 52-week low is 10.8%
• Put/call ratio: 0.127, z-score 1.58
• ORTEX short score: 66.9 (Aug 28), up from 62.3 on Aug 17
• Carronade Capital: 13G filer, 8.6% stake, as of Aug 14