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

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WTI Crude Oil CoT: Peek Into Future Through Futures, How Hedge Funds Are Positioned
By: Hedgopia | May 25, 2024

• Following futures positions of non-commercials are as of May 21, 2024.

WTI Crude Oil: Currently net long 255.3k, up 21.8k.



For the second consecutive week, a rising trendline from last December when West Texas Intermediate crude bottomed at $67.71 was breached intra-week but defended by the end of the week. The difference this time was that the crude ended the week right on it, with oil bulls buying Friday’s low of $76.15 to push the session up 1.1 percent to $77.72/barrel. With this, they also defended short-term horizontal support just south of $77.

The crude has faced difficulty at $80 for three weeks now. Back then, WTI fell back into a well-established range between $71-$72 and $81-$82 that persisted for 19 months before the upper end gave way a couple of months ago. Oil bulls need to at least charge toward the upper range sooner than later. Else, they risk a breach of the December trendline.

In the meantime, US crude production in the week to May 17th was unchanged for 11 consecutive weeks at 13.1 million barrels per day; 13 weeks ago, output was at a record 13.3 mb/d. Crude imports decreased 81,000 b/d to 6.7 mb/d. As did gasoline inventory, which dropped 945,000 barrels to 226.8 million barrels. Stocks of crude and distillates went the other way, up 1.8 million barrels and 379,000 barrels respectively to 458.8 million barrels and 116.7 million barrels. Refinery utilization increased 1.3 percentage points to 91.7 percent.

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