Home Gold News Crude Oil Sees Good Speculative Buying

Crude Oil Sees Good Speculative Buying

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Large energy speculators increased their net long positions in the WTI Crude Oil futures market impressively last 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 471536 contracts in the data reported through October 5th 2020. This was a weekly gain of 9625 net contracts and pushed the net longs up from a five month low.

Oil prices were steady in early trade on Tuesday, sitting on losses of nearly 3% from the previous session after supplies began to resume in Norway and the U.S. Gulf of Mexico and Libya resumed production at its largest oilfield. The return of supply comes as resurgent COVID-19 infections in the U.S. Midwest and Europe raise worries about fuel demand growth, posing a challenge for the Organization of Petroleum Exporting Countries and its allies, together called OPEC+. OPEC+ has curbed supply to help shore up oil prices amid coronavirus pandemic, with cuts of 7.7 million barrels per day due to hold through December. The producers’ market monitoring panel is due to meet next Monday. With workers returning to U.S. Gulf of Mexico platforms after Hurricane Delta and Norwegian workers returning to rigs after ending a strike, all eyes were on Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), which on Sunday lifted force majeure at the Sharara oilfield. The country’s total output on Monday was at 355,000 bpd and will double if the Sharara field gets back to pumping at the 300,000 bpd it was producing before the Libyan National Army blockaded energy exports in January.

TREND : WEAK BEARISH / SIDEWAYS

Time                                      :           13/10/2020

Pivot                                     :           39.61

Technical View                     :           LONG ABOVE 39.81

Target                                   :           40.01, 30.31, 40.91, 41.46

Technical View                      :           SHORT BELOW 39.41

Target                                   :           39.21, 38.76, 38.31, 37.61

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