Hedge funds buy Brent… Reuters – Commodity Research Group

May 11, 2020 by Jim Colburn Leave a Comment

John Kemp, Reuters, does an excellent job summarizing the CFTC’s weekly Commitment of Traders report, here… One weakness in the CFTC’s report is that it comes out on Friday with positions as of Tuesday (much trading and repositioning can occur in 3 days)… Here is Kemp:

“In a continuation of the pattern evident in recent weeks, last week’s purchases were concentrated in crude (+36 million barrels) with no significant buying or selling in refined fuels such as gasoline and middle distillates.

But in a break with the recent pattern, the crude buying focused on Brent (+34 million barrels) rather than WTI (+2 million), which likely reflected a degree of catching up.

One week earlier, fund managers held more than 5 bullish long positions for every short one in WTI, but the equivalent ratio in Brent was just 2.5 to 1.”

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

Reader Interactions

Leave a Reply Cancel reply