Recent developments in the commodities market, particularly in the oil sector, have led to significant shifts in trading patterns and prices. Last week, speculators in the oil market experienced a notable setback, described as their 'Waterloo', indicating a major loss for those heavily invested in oil stocks. The Commitment of Traders (COT) report for the week ending February 6 highlighted broad selling across commodities, reducing the net long positions to 114k lots, the lowest since October 2019. This sell-off was led by crude oil, natural gas, copper, soybeans, and corn, with grains extending their short positions. Specifically, crude oil saw a significant trading volume with 78k lots of Brent and WTI sold, marking the most since October, just before a 5% price bounce at the week's end. Concurrently, Europe's oil refineries have increased their crude purchases in response to a surge in diesel prices and disruptions to Middle Eastern shipments. This has been compounded by refinery outages and Red Sea shipping disruptions, leading to a tight supply situation in Europe and pushing diesel prices higher.
Fuel That Powers the Economy Flashes Supply Tightness in Europe Fuel’s margin over crude oil jumps to a seasonal high Traders face refinery outages and shipping disruption #oott https://t.co/MYTtP8iGNz
From refinery outages to Red Sea shipping disruptions, diesel's mounting supply woes are pushing European prices higher https://t.co/74GNT7KpNH
Europe’s oil refineries are stepping up crude purchases following a surge in the price of diesel and disruptions to imported shipments from the Middle East https://t.co/lqLNQwKejg
COT on #commodities: Broad selling in the wk to Feb 6 reduced the net long (24 contracts) to just 114k lots, lowest since Oct 2019. Most sectors except softs and livestock saw net selling led by #crudeoil, #natgas, #copper, #soybeans and #corn. The #grains short extended to a… https://t.co/wdTZ11vMo4
#Crudeoil: Speculators, looking for momentum are having a difficult year so far, constantly buying highs and selling lows. The week to Feb 6 was no exception with 78k lots of Brent and WTI, the most since October, sold just ahead of the 5% end of week bounce. #oott https://t.co/mpxpeiqtNl
ALERT: RISK IS ON For those of you betting interminably on oil stocks — last week was your Waterloo. Good Sir, you have been dispatched and do not belong in the cadre of important men in the field of finance. Below are the top performers of last week. It should be noted the… https://t.co/p0dObSnUUQ