While oil prices this month rose 7.4% amid falling production in the US and supply disruptions from Canada and Nigeria, speculators have reduced the number of short positions (betting on the fall of oil prices WTI) to their lowest since June of last year, according to Bloomberg, citing data from the Commission on trade commodity futures (CFTC).
Purely bets on cheaper WTI (net short positions) during the reporting week, according to the CFTC, fell to 3,047 thousand futures and options — 60,932 thousand to the Number of pure long positions at the same time, decreased by 2.1%.
“If you put in cheaper oil, starting in February, this rally was very painful,” said Kyle Cooper, Director of research, IAF Advisors and Cypress Energy Capital Management.
At the same time, a growing number bets on a rise in the cost of diesel fuel with ultra low sulfur content (ULSD). During the week it rose more than twice up to 13,378 contracts — this was the highest figure since July 2014. At the same stoimsot gasoline futures on the Nymex increased by 1.2%.
“This week was a number of more interesting products than oil,” — said Tim Evans, analyst at Citi Futures Perspective in new York. According to him, on the diesel fuel market, “investment managers are more optimistic than they have been for nearly two years, which is very impressive.”