According to the CFTC Commitments of Traders report for the week ended December 1, NET LENGTH for crude oil futures declined -5 474 contracts to 517 165 for the week. Speculative long position gained +4 190 contracts, while shorts rose +9 664 contracts. For refined oil products, NET LENGTH for gasoline decreased -4 521 contracts to 60 363, while heating oil’s NET LENGTH gained +6 748 contracts to 20 441. NET LENGTH in Natural Gas futures jumped +14 431 contracts to 39 743 for the week.
Gold futures’ NET LENGTH soared +16 412 contracts to 260 314 while silver futures’ NET LENGTH added +2 212 contracts to 47 892. The yellow metal slumped last week, breaching below the 200 day MA. This suggests that the rally in the medium-term has probably finished. We, however, expect the downside is limited. The global low interest rate environment should lend support to the metal. For PGMs, NET LENGTH of Nymex platinum futures gained +3 261 contracts to 22 026 while that for palladium slipped -3 contracts to 3 024.
