WTI Crude Oil Speculators Continued To Pare Bullish Bets
Zachary Storella | Aug 30, 2020 01:24AM ET
Large energy speculators cut back on their bullish net positions in the WTI Crude Oil futures markets this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.
The non-commercial futures contracts of WTI Crude Oil futures, traded by large speculators and hedge funds, totaled a net position of 500,699 contracts in the data reported through Tuesday, August 25th. This was a weekly shortfall of -9,996 net contracts from the previous week which had a total of 510,695 net contracts.
The week’s net position was the result of the gross bullish position (longs) rising by 6,304 contracts (to a weekly total of 671,889 contracts) while the gross bearish position (shorts) rose by 16,300 contracts for the week (to a total of 171,190 contracts).
WTI Crude Oil speculators reduced their bullish bets this week for the third straight week and for the fourth time in the past five weeks. Bullish bets have now tumbled by a total of -35,567 contracts over these past three weeks. Crude oil speculative positions, despite the recent slide, have been bid very well as speculator positions have remained above the +500,000 contracts now for twenty consecutive weeks.
h3 WTI Crude Oil Commercial Positions:/h3The commercial traders' position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -536,969 contracts on the week. This was a weekly increase of 10,778 contracts from the total net of -547,747 contracts reported the previous week.
Over the same weekly reporting time-frame, from Tuesday to Tuesday, the WTI Crude Oil Futures (Front Month) closed at approximately $43.35 which was a boost of $0.46 from the previous close of $42.89, according to unofficial market data.
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