Oil: the feast of the bulls is in full swing

The Commodity Futures Trading Commission (CFTC) reported, for the week ending last Tuesday, that the Commitments of Traders (COT) reports showed.

Non-commercial large speculators increased their net position to purchase oil contracts by 27.5 thousand contracts, bringing the total to 326.9 thousand. This marks the third consecutive week of increases in the net position, and 9 out of the last 11 weeks. The current net position is the highest it has been since June 7, 2022.

Hedger operators have been increasing their net position for selling oil contracts for 9 weeks out of the last 11, with the latest figures showing a 39.7 thousand contract increase to 348.7 thousand for COMMERCIAL hedgers.

The number of open contracts rose by 89 thousand, bringing the total to 1.792 million.

The ratio of the number of contracts to buy to the number of contracts to sell for the bullish index of large speculators rose by 0.25 to 4.21 over the course of the week.

Data from the COT report indicates that bullish sentiment is on the rise. Over the past two months, traders have been increasing their net position in anticipation of higher prices. This has resulted in the highest net position in the last 15 months. Additionally, large speculators have increased their purchases by 7% in the last week. If this trend continues, it could lead to an increase in oil prices.

WTI

COT reporting data is essential for medium to long term trading. Large speculators, NON-COMMERCIAL (banks, investment funds) usually follow the trend (blue line). Small speculators, NONREPORTABLE POSITIONS, generally do not have much impact on the market (red line). Hedgers, COMMERCIAL (operators, large companies) usually go against the trend (black line). The net position is the difference between the number of buy and sell contracts. Open interest is the total of all open positions in the market.