Energy Preview: Speculative Demand Remains Weak For Crude

Large energy speculators continued to cut 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 607,828 contracts in the data reported through Tuesday May 29th. This was a weekly decline of -25,558 contracts.

Speculative bets have cooled off for six straight weeks and stand at the lowest level in nearly six months. Meanwhile, the commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -652,629 contracts on the week. This was a weekly change of 12,873 contracts from the total net of -665,502 contracts.