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CFTC COT Update for 1/2/2018

A constant stream of bullish events has pushed crude oil and its products higher since the end of November. On December 7, a leak was detected on the Forties Pipeline System in the North Sea. The pipeline was closed for repairs five days later, removing 450,000 bpd of production from the global market. On December 27, armed men attacked and destroyed a pipeline segment in Libya, removing up to 100,000 bpd from the countries production. On December 28, protest broke out in Iran that resulted in at least 21 deaths. Iran produces 3.8 million bpd of oil and has been sanctioned in the past by the US.

Net positioning for NYMEX WTI futures has fallen to 389,136 from 404,238 and remains near highs from January 2017. The Hedge Fund ratio has increased to 11.36 from 10.96. Since 2006, the hedge fund ratio has only surpassed the 11.36 level two times.

Net positioning for NYMEX ULSD has increased to 90,949 from 81,292 and the hedge fund ratio has jumped significantly to 9.94 from 7.96. Since 2006, the hedge fund ratio has only been higher than 9.94 once.

Net Positioning for NYMEX RBOB has increased to 81,367 from 79,440. Net positioning has fallen significantly from recent highs at 101,271 formed on 11/14/2017. Managed Money long contracts as a percentage of total long and short Managed Money contracts has fallen to 85.44% from 87.15%. Managed Money percent long remains above highs made on 1/31/2017 of 82.77%.