Commodity Daily News

CFTC Data Hints at Crude Oil Price Declines

Spot crude oil prices were relatively unchanged from Friday's price as many market participants were away from their trading desks due to the 4th of July holiday in the US. However, this week will have important data releases that could determine the next move in spot crude oil prices. Friday's non-farm payrolls report will be the key report for crude oil traders as the US unemployment picture remains bleak and is not expected to show a dramatic improvement from previous reports.

Crude oil traders should be aware of the continued drop in managed money long positions in the NYMEX crude oil futures contract as shown by the most recent CFTC Commitment of Traders report. While the market continues to be net long, the shorts increased their position while open interest has steadily declined since reaching a peak in late May. This data hints at declines for spot crude oil prices.