Latest COT Report: Growing Bearish Sentiment Toward Oil

New York (HedgeCo.net) – The Commitment of Traders report that was released on Friday showed that institutional investors have increased their bearish bets toward oil greatly in the last few weeks. From June 23 through July 14 when the data collection cut off for Friday’s report, bearish bets had increased from 152,568 contracts to 203,647 contracts among the large speculator class—most of which are hedge funds and other institutional traders.

During the same period, the number of contracts being held long fell from 480,001 to 468,034. This put the net position at 264,387 net contracts being held long and that is the lowest net reading since the first week of April.

The price of West Texas Intermediate Crude fell 12.69% during the time period referenced above. Oil had experienced a rally from mid-March through June 23 with prices jumping 34% from the March low, but the recent selling has some investors thinking the March low could be breached.

Rick Pendergraft
Research Analyst
HedgeCoVest

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