On Sunday evening we wondered if news that Libya and Nigeria may soon be asked to cap output would serve as a catalyst for crude prices to start the week.
If you’re interested in the details on that, you can read them here, but suffice to say any positive sentiment the comments from Kuwait’s Oil Minister might have created evaporated entirely by about 5 a.m. EST.
Long story, short, WTI is back below $44 and Brent is down near $46 again. So we’re at the lowest levels since June 27 on WTI:
“The big story here goes back to Friday and the rise in rig count,” says Jens Pedersen, senior analyst at Danske Bank. “We really don’t have enough evidence yet to put the break on the expansion of U.S. production.”
And that’s bad news for some folks. Because the same money managers who were record bearish last month, just increased their bullish Brent and WTI oil bets by 43,531 combined net-long positions to 382,168 (according to weekly ICE and CFTC data on four contracts), the most bullish in three weeks.
The short- only position fell 24,413 lots to 374,924 – the lowest in three weeks.