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Jonathan Cutrer
OPEC analysts noted in their monthly report that a notable decrease in net long positions in July led to increased volatility and hastened the fall in oil futures prices, resulting in a 7% decline.
Net long positions in ICE Brent dropped to their lowest levels since at least 2011. There was a lot of selling pressure for NYMEX WTI as many long positions were closed while short positions increased only slightly. During the time period from July 30 to Aug. 27, hedge funds and money managers offloaded 23 million barrels collectively on the two exchanges, as stated in the report.
There was increased speculative selling on NYMEX WTI, resulting in a 12% decrease in net long positions, while ICE Brent experienced a 2.7% increase in net long positions.
source: bloomberg.com
Net long positions in ICE Brent dropped to their lowest levels since at least 2011. There was a lot of selling pressure for NYMEX WTI as many long positions were closed while short positions increased only slightly. During the time period from July 30 to Aug. 27, hedge funds and money managers offloaded 23 million barrels collectively on the two exchanges, as stated in the report.
There was increased speculative selling on NYMEX WTI, resulting in a 12% decrease in net long positions, while ICE Brent experienced a 2.7% increase in net long positions.
source: bloomberg.com
