Decline of speculative net long positions in Brent

Brent is found to be little changed at $48.5 per barrel and WTI at $46 per barrel today morning. The data relating to economic activity in the manufacturing sector published yesterday in China and the US point to only subdued growth in oil demand in these two key oil consumer countries. 

Therefore, the countries played their part in the weak prices, as did suspected selling on the part of speculative financial investors, whose net long positions in Brent fell by a further 20,600 to 139,200 contracts in the week to 27 October. This puts them at their lowest level since mid-September.

The decline in net long positions was due solely to an increase in speculative short positions. Net short positions in gasoil have now even reached a record-high level of 24.2 million contracts, notes Commerzbank.