Oil & Gas - Energy - Commodities - Resources (OILBRENT)

[DiscoverGold]

Peek Into Crude oil Future Through Futures

* November 5, 2016

Following futures positions of non-commercials are as of November 1, 2016.

Crude oil: In the EIA report this week, traders decided to focus on crude stocks and imports, not on gasoline and distillate stocks. On Wednesday, spot West Texas Intermediate crude dropped 2.9 percent to $45.34/barrel – past $46.40-ish support, and then lost another 2.8 percent on Thursday and Friday to $44.07.

In the week through November 2, crude inventory rose by a massive 14.4 million barrels to 482.6 million barrels – a nine-week high.

Crude imports increased by two million barrels per day to nine mb/d. This was the highest since the week through September 14, 2012.

Gasoline stocks, on the other hand, fell by 2.2 million barrels to 223.8 million barrels – the lowest this year. And distillate stocks dropped by 1.8 million barrels to 150.6 million barrels – a 17-week low.

In the meantime, crude production rose a tad, by 18,000 b/d to 8.5 mb/d – a 10-week high. Production peaked at 9.61 mb/d in the June 5th week last year.

Refinery utilization fell four-tenths of a point to 85.2.

The loss of $46 on spot WTI breaches the rising trend line from February this year – potentially important development. For now, the crude is oversold. At Friday’s low, it was merely 0.4 percent from testing the 200-day moving average ($43.38). Oil bulls cannot afford to lose this support.

Currently net long 314.4k, down 49.6k.



http://www.hedgopia.com/cot-peek-into-future-through-futures-68/

• DiscoverGold

Click on "In reply to", for Authors past commentaries