Home Gold News Crude Oil Speculative Long Positions See Sharp Fall

Crude Oil Speculative Long Positions See Sharp Fall

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Large energy speculators sharply cut their net long positions in the WTI Crude Oil futures market 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 442460 contracts in the data reported through November 2nd 2020. This was a weekly tumble of 29630 net contracts. The net longs fell near seven month low. The commercial trader’s position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -467558 contracts on the week. This was a weekly change of 31246 net contracts.

Crude oil may witness some profit booking as prices rose sharply yesterday

Crude oil may witness some profit booking as prices rose sharply yesterday, Oil slipped as much as 1.2% in Asia amid increasing virus infections after surging on Monday following news of a potential vaccine breakthrough that offered grounds for optimism on long-term demand prospects. Oil surged about 8% yesterday, its biggest daily gain in more five months, after Pfizer announced promising results for its COVID-19 vaccine. Pfizer said its experimental vaccine was more than 90% effective in preventing COVID-19, based on initial data, a victory in the battle against a pandemic that has forced lockdowns around the world. Oil markets also rose after Saudi Arabia suggested it and other oil producers could adjust its current supply-cut pact, perhaps taking more barrels off the market if demand slumps in the winter as infections rise and before the vaccine are widely available. Fuel demand is down worldwide as a result of the pandemic, and with infections now surpassing 50 million globally, numerous nations, especially in Europe, are reimposing lockdowns to slow the virus’s spread. The vaccine news gave traders hope that the pandemic could be tamped down next year, which would help people resume normal life, boosting demand. OPEC+ is currently cutting 7.7 million barrels per day (bpd), and considering reducing those cuts to 5.7 million bpd from January. If OPEC+ maintains the current curbs on output, it would tighten supply and lead to higher prices.

TREND : WEAK BULLISH

Time                                      :           10/11/2020

Pivot                                     :         39.61

Technical View                     :          LONG ABOVE 39.81

Target                                   :        40.01, 41.61, 43.22, 45.07

Technical View                      :           SHORT BELOW 39.41

Target                                   :        39.21, 37.75, 36.01, 34.29

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