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25 Jan 2016
CFTC summary: Oil at unsustainable levels - TDS
FXStreet (Guatemala) - Analysts at TD Securities offered the CFTC Commitment of Traders Report for the Week Ending January 19th, 2015 in commodities.
Key Quotes:
"Silver specs have now retraced almost 50% of their bearish short positioning that they built heading into the December Fed meeting, as global equity jitters, fleeting economic data, and China devaluation concerns all diminish rate hike expectations and add safe haven appeal for the precious complex."
"PGMs specs moved in opposite directions, with platinum specs adding more sharply to short positions, as they rode downward price momentum and ignore the strength in global auto sales growth. On other hand, palladium specs did cover 1.1K lots of short positions (4% of O.I.), but with positioning still 300% above 2015 lows the covering seemed more like profit-taking."
"Speculative WTI investors aggressively covered their short exposure and took on new long positions to move net-long exposure some 40.5k lots higher (40.5 million bbls), prompted by the sharp correction that took nearby WTI futures below $30/bbls. This level makes many non-conventional producers unable to cover even basic operational costs, which appears to have been enough to convince investors that significantly tighter markets are coming— crude is now up some 22% from this week's lows."
Key Quotes:
"Silver specs have now retraced almost 50% of their bearish short positioning that they built heading into the December Fed meeting, as global equity jitters, fleeting economic data, and China devaluation concerns all diminish rate hike expectations and add safe haven appeal for the precious complex."
"PGMs specs moved in opposite directions, with platinum specs adding more sharply to short positions, as they rode downward price momentum and ignore the strength in global auto sales growth. On other hand, palladium specs did cover 1.1K lots of short positions (4% of O.I.), but with positioning still 300% above 2015 lows the covering seemed more like profit-taking."
"Speculative WTI investors aggressively covered their short exposure and took on new long positions to move net-long exposure some 40.5k lots higher (40.5 million bbls), prompted by the sharp correction that took nearby WTI futures below $30/bbls. This level makes many non-conventional producers unable to cover even basic operational costs, which appears to have been enough to convince investors that significantly tighter markets are coming— crude is now up some 22% from this week's lows."