CFTC Data Suggests Constructive Turn in US Oil Market Positioning

Speculative positioning in the US oil market turned more constructive last week, according to data from the CFTC. The West Texas Intermediate (WTI) saw a significant increase in net longs, rising by nearly 23K contracts to around 122.1K contracts.

This marked the strongest weekly rise since late July and came as WTI traded with decent gains over the reporting week. However, despite this improvement, net positioning remains near the 13th percentile of its 5-year range.

In contrast, Canadian Dollar (CAD) net shorts narrowed by almost 15.2K contracts to around 158.2K contracts, a strong weekly improvement since early May. This decline in CAD net shorts came despite a modest decline in USD/CAD.

The Japanese Yen’s positioning deteriorated by around 10.8K contracts as longs fell and shorts increased, while the Australian Dollar (AUD) saw an increase in net shorts despite a decent advance in AUD/USD.