HomeAction InsightOil N' GoldBulls Continued to Outweigh Bears Despite Mixed Outlook in Oil Price

Bulls Continued to Outweigh Bears Despite Mixed Outlook in Oil Price

According to the CFTC Commitments of Traders report for the week ended July 31, traders were generally bullish towards the energy complex. Net LENGTH for crude oil futures rose +2 929 contracts to 613 400. Net LENGTH for heating oil futures added +305 contracts to 42 017 while that for gasoline gained +11 316 contracts to 110 958. Net SHORT for natural gas decreased -1 684 contracts to 126 427 for the week. Both crude oil benchmarks rose during the week. The front-month for WTI crude oil contract added +0.35% while the Brent contract gained +1.1%. However, if we look at the bigger picture, the WTI contract has fallen for 5 consecutive weeks and has been hovering below US$70/bbl recently. The Brent contract is more directionless with price fluctuating about US$75/bbl over the past weeks.

Traders were mixed over the precious metal complex. NET LENGTH for gold gold futures declined -13 260 contracts to 35 337 last week. Meanwhile, NET LENGTH for silver futures gained +2 326 contracts to 5 864. For PGMs, NET SHORT of platinum added +67 contracts to 8 183 while NET LENGTH for palladium was up +1 149 contracts to 4 596 during the week. The benchmark Comex gold contract slipped -0.02% while the corresponding silver contract gained +0.24% during the week. Risk for gold continues to be tilted towards the downside as US Treasury yields continue to climb higher.


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