WTI crude oil price fluctuated about US$40/bbl last week. Latest forecasts from major oil agencies suggest that impacts of the pandemic on demand will be long-lasting. This could be a barrier for price to go higher. Bets on gold increased in both directions. However, short positions more than doubled those of long as US yields improved. Outlook on gold depends on US fiscal stimulus hopes and presidential election.
According to the CFTC Commitments of Traders report for the week ended October 13, NET LENGTH for crude oil futures added +1 261 contracts to 472 797 for the week. Speculative long position declined -7 854 contracts, while shorts also fell -9 115 contracts. For refined oil products, NET LENGTH for gasoline decreased -2 632 contracts to 54 022, while NET LENGTH for heating oil futures dropped -3 624 contracts to 4 586. NET LENGTH in Natural Gas futures added +450 contracts to 69 178 for the week. The front-month contract has strengthened for four consecutive weeks, albeit losing momentum, amidst expectations that demand will soar as winters is around the corner.
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Gold futures’ NET LENGTH slumped -7 916 contracts to 240 671 as short positions rose rapidly by +13 980 contracts. Meanwhile, silver futures’ NET LENGTH slipped -469 contracts to 40 788. For PGMs, NET LENGTH of Nymex platinum futures was +316 contracts to 8 911 while that for palladium added +197 contracts to 3 391.