Money Market Guru — Oil has edged above $50 per barrel amid speculation that the Organisation of Petroleum Exporting Countries (OPEC) would extend its deal to cut output beyond June. However, there are broad concerns that the deal between OPEC and some non-members to reduce output by 1.8 million barrels per day (bpd) in the first half of 2017 has not substantially lowered global oil stockpiles.
WTI oil is holding above $51 levels right now. MCX Crude oil closed up 1.60% at Rs 3329 per barrel yesterday and should witness further gains today.
Meanwhile, the large speculators and commodity traders decreased their net positions in the WTI crude oil futures markets last week for the fifth straight week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday. The non-commercial contracts of WTI crude futures, traded by large speculators and hedge funds, totaled a net position of 398,080 contracts in the data reported through March 28th. This was a weekly decline of -20,437 contracts from the previous week which had a total of 418,517 net contracts.
Crude speculative positions are now at their lowest level (and under the +400,000 contract level) since December 6th. Meanwhile, the commercial traders position, categorized by the CFTC as hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -410,089 contracts last week. This is a weekly change of 23,348 contracts from the total net of -433,437 contracts. — Money Market Guru