“Oil God” Andy Hall may be massively bullish on crude, but according to Reuters, bullish bets on oil have never been this low:
Data from the U.S. Commodity Futures Trading Commission (CFTC) showed that money managers, including hedge funds and other big speculators, cut their net longs in U.S. crude oil futures by 12,117 contracts during the week to Dec. 8.
It was a fifth straight week of declines that left their net long position in U.S. crude at 46,919 contracts, the lowest since the CFTC created the managed money category for oil in 2009.
“It is difficult to find anyone who is bullish right now on oil,” said Chris Jarvis, founder of Caprock Risk Management, an oil consultancy in Frederick, Maryland.
“Saudi Arabia has basically told the world that it’s full steam ahead in production. Add the global oil glut and the strong dollar weighing on commodities, and it’s a one-way ticket down with nothing on the horizon to derail it.”
In contrast, hedge funds and various other speculators have taken short positions on gold off its record high. Weekly net speculator positions on COMEX gold rose by 9,873 contracts last week, largely due to the 3,972 climb in bullish wagers and a 5,901 drop in bearish bets. The commercials however seem to be gearing up for the worst. Not only do they remain bearish, but they’ve also raised their short positions on the yellow metal to 13,997 contracts through the week of December 8.
Photo: Pete Markham