Nissan to lay off thousands of workers as sales drop    Trump picks Susan Wiles as White House chief of staff    Three charged in connection with Liam Payne's death    Israel passes law to deport relatives of attackers, including citizens    Monkey mayhem in South Carolina after 43 primates escape research facility    Russian anti-war teenager faces five years in jail after failed appeal    Uproar in Ghana after president unveils his own statue    BD and INS partner to elevate standards of infusion care in MENAT    Qassim emir launches 52 health projects costing a total of SR456 million    Dubai Design Week launches its 10th edition, celebrating creativity and innovation    Fakeeh Care Group reports 9M-2024 net profit of SR195.3 million, up 49% y-o-y driven by solid revenue growth and robust profitability    GASTAT: Passengers of public transport bus and train soar 176% and 33% respectively in 2023    HRT does not impact life expectancy — UK health body    Liam Payne's body to be flown back to the UK    Arab leaders and heads of state congratulate US President-elect Donald Trump    Neymar suffers muscle tear, out for 4-6 weeks    Suspect arrested for banking fraud totaling SR493 million as Nazaha pursues corruption charges    Al Nassr secures 5-1 victory over Al Ain to edge closer to knockout stage    Al Ahli extends perfect start with 5-1 victory over Al Shorta    Mitrovic's hat-trick leads Al Hilal to 3-0 victory over Esteghlal    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Muted Eid celebrations for millions of Nigerian Muslims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



COT: Wagers on WTI crude oil reach highest in a year
Published in The Saudi Gazette on 12 - 05 - 2020

DUBAI — The below summary highlights futures positions and changes made by hedge funds across 24 major commodity futures up until last Tuesday, May 5. Saxo Bank found that funds maintained strong buying interest in crude oil and natural gas while precious metals longs were reduced further. The agriculture sector continued to be traded with a short bias led by corn, sugar and cotton.
Overall, the net-long across the 24 commodity futures jumped by 10% to 620k lots. Longs in energy (690k lots) and precious metals (182k lots) more than off-setting short positions in grains (-188k lots) and softs (-71k lots). The livestock sector was net-sold despite news about emerging meat shortages due to virus related closures of major US processing plants.
Energy: Crude oil's accelerated rally attracted continued buying with funds lifting the combined long in Brent and WTI crude oil by 50k lots to 477k lots, a three-months high. Short positions continued to be reduced while fresh longs were added. Not least in WTI where the net long reached a one-year high while the gross long hit a level last seen in September 2018.
A rapid reduction in US shale oil production highlighted by last week's plunge in the active drilling rig fleet to an 11-year low, a pickup in global demand and the beginning of the OPEC+ deal to curb production have all supported renewed recovery hopes. At six longs per one short the long/short ratio in WTI has further room to go before reaching the recent peak at 10 from last December.
Speculators added further length to their natural gas position on speculation that the price would benefit from a drop in shale oil related production. Ten weeks of buying has lifted the net-long in four Henry Hub deliverable futures and swap contracts to 163k lots.
The sharp correction that followed last Tuesday after the price rallied but failed to hold onto a $2 handle highlights the two-way risks emerging with slowing production being countered by weaker LNG exports and lower domestic demand as parts of the US remain in lock-down.
Metals: Gold's net-long was cut by 12k lots to 172k lots, the lowest in 11 months. While investors with a long-term horizon have continued to buy bullion-backed ETF's, momentum and price sensitive leveraged funds have grown weary of golds inability to break away from $1700/oz.
Silver has done even worse with the net-long having been cut by 85% since February. Silver is worth keeping an eye on next week on emerging signs of strength against gold after the XAUXAG ratio broke the recent uptrend. Copper had a quiet week with lack of momentum driving reductions in both long and short positions, thereby leaving the net close to unchanged.
Agriculture: Corn continued to be sold with the net-short reaching a one-year high at 190k lots. Weak demand from ethanol producers and a strong beginning to the coming crop season has kept the price close to a multi-year low just above $3/bu. Wheat returned to neutral while sugar's oil-related surge from 9 to 11 cents/lb helped cut the net-short by 22%. — SG
— The writer is head of commodity strategy at Saxo Bank


Clic here to read the story from its source.