Energy Preview: WTI Crude Eyes OPEC, Hits Two And Half Month Top

Energy Preview: WTI Crude Eyes OPEC, Hits Two And Half Month Top

Dec 06, 2019 04:12 IST capital market

WTI Crude oil futures soared near two and half month high of $58.66 per barrel yesterday as media reports stated that OPEC and allies led by Russia on Thursday agreed one of the deepest output cuts this decade to prevent oversupply in a deal that will apply for the first three months of 2020. Existing supply curbs of 1.2 million barrels per day, aimed at supporting oil prices and preventing excess supply, are set to expire in March. WTI Crude is currently trading at $58.25 per barrel, down marginally on the day. MCX Crude oil ended down 0.36% at Rs 4169 per barrel and could correct further today.

Fund buying has been strong in oil recently. Large energy speculators sharply advanced their bullish net positions in the WTI Crude Oil futures markets last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Monday (delayed due to Thanksgiving holiday). The non-commercial futures contracts of WTI Crude Oil futures, traded by large speculators and hedge funds, totaled a net position of 470,936 contracts in the data reported through Tuesday November 26th. This was a weekly gain of 40,961 net contracts. Crude oil speculators continued to raise their bullish positions for a seventh straight week

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