Temporary recovery of oil prices was driven by speculation

The ICE and CFTC statistics show that the previous increase in oil prices was largely attributable to short covering. 

Since mid-August, the number of speculative short positions in Brent on the ICE has fallen from around 130,000 contracts to 97,000 contracts as per 8 September, while those in WTI on the NYMEX have declined from 159,000 to 129,000 contracts. 

Overall, however, investor optimism has decreased significantly as compared with May, based on net long positions in both oil types, notes Commerzbank.