Traders trimmed bets on crude oil futures. Although output cuts by OPEC+ and in the US have temporarily relieved storage, the outlook of the oil market remains uncertain. Macroeconomic data from major economies suggest that unemployment is rising. This could lead to demand disruption, and eventually cause selloff in oil prices. NET LENGTH on gold futures declined last week as price consolidated. We will likely see increase in bets for higher gold price in the coming week as concerns about global economic recovery should stimulate demand for safe haven assets.

According to the CFTC Commitments of Traders report for the week ended May 12, NET LENGTH for crude oil futures gained +10 407 contracts to 541 019 for the week. Speculative long positions declined -13 355 contracts while shorts slumped -23 762 contracts. For refined oil products, NET LENGTH for gasoline dropped -9 452 contracts to 66 010, while heating oil‘s NET SHORT increased +692 contracts to 1 152. NET SHORT for natural gas futures gained +12 298 contracts to 46 271 contracts for the week.

Gold futures’s NET LENGTH fell -7 176 contracts to 242 828. Speculative long positions added +2 200 contracts while shorts soared +9 376. Silver futures’ NET LENGTH gained +2 858 contracts to 25 773. For PGMs, NET LENGTH of Nymex platinum futures decreased -91 contracts to 18 155 while that for palladium slipped -275 contracts to 390.

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