CFTC Commitments of Traders – Energy Prices Declined as Resurgent Covid Cases Raised Concerns over Demand Outlook

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According to the CFTC Commitments of Traders report for the week ended October 27, NET LENGTH for crude oil futures declined -18 258 contracts to 472 090 for the week. Speculative long position dropped -4 919 contracts, while shorts soared +13 339 contracts. The front-month WTI crude oil contract plunged over -4% during the reporting week. We expect NET LENGTH to drop further in the coming week as crude oil price fell to the level not seen since mid-June.  For refined oil products, NET LENGTH for gasoline decreased -4 128 contracts to 49 636, while heating oil drifted to NET SHORT of 614 contracts. NET LENGTH in Natural Gas futures dived -21 705 contracts to 49 244 for the week.

Gold futures’ NET LENGTH slipped -970 contracts to 248 634 while silver futures’ NET LENGTH slipped -95 contracts to 44 631. Bets were trimmed on both sides for gold and silver. For PGMs, NET LENGTH of Nymex platinum futures gained +2 226 contracts to 10 051 while that for palladium added +55 contracts to 3 468.

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