Speculative financial investors in Brent on the retreat

Speculative financial investors are continuing to retreat from the oil market, thereby increasing the selling pressure. Net long positions in Brent decreased by 36,000 to 178,700 contracts in the week to 28 July. This was the sharpest weekly decline since mid-May and their lowest level in five months. Two thirds of the decrease were attributable to the reduction of long positions, while a third was due to increased short positions. 

According to Commerzbank, "Prices may be recovering slightly this morning, but given the 1.5 to 2.0 million barrel per day oversupply generated by OPEC the recovery will probably be short-lived. The yearly lows mentioned above are likely to be put to the test over the coming weeks."