Energy Preview: Crude Sees Weak Speculative Demand

Large energy speculators reduced their bullish net positions in the Crude Oil WTI Futures markets 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 690,727 contracts in the data reported through Tuesday May 1st. This was a weekly fall of -21,696 contracts from the previous week. The speculative position has declined for two straight weeks. However, the overall net position remains extremely bullish. The speculative longs had hit record high of +739,097 contracts reached on February 6th. Meanwhile, the commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -719,906 contracts on the week. This was a weekly increase of 18,437 contracts.