Money managers increased net length in crude oil futures by 7,509 lots to 115,229 contracts over the week ending July 17, according to data released by the Commodity Futures Trading Commission Friday. During that period, front-month crude futures increased $3.41/barrel.
But the category increased net length by bailing out of short positions. Money managers cut short positions by 5,294 lots to 67,095 short contracts, while adding only 2,215 longs for a total of 182,234 long contracts over the week reported.
Money managers have not been this long since the week ending June 5, when front-month crude prices declined $6.47 over the week prior.
Producer/merchants, meanwhile, continued building a net short position, adding 5,700 lots for a total 57,403 net short crude futures contracts.
The category has been adding to this position for the past nine weeks.
Swap dealers busily added to their net short position, adding 17,976 lots for a total net short position of 108,773 contracts. The category added 15,288 shorts and reduced longs by 2,688 over the week.
Swap dealers reached a 2012 low for their net short position the week ending June 26, at 74,353 contracts, before pivoting and adding back net shorts for the four weeks since.
In products, producer/merchants seem to be following a longer-term trend of reducing their net short positions in both heating oil and RBOB futures.
Over the reporting period, both heating oil and RBOB futures rose 8 cents/gal.
Producer/merchants reduced their net short position in heating oil last week by 1,856 lots to 43,760 contracts, the lowest in eight weeks. This follows a downward trend in this position going back to the week ending March 20, when producer/merchants were net short 89,596 heating oil contracts.
Likewise, in RBOB futures producer/merchants reduced their net short position by 3,069 lots to 92,819 contracts. The category has been reducing their net short since the week ending March 6, when producer/merchants were net short 128,930 contracts.
Money managers continued a longer-term trend of bailing out of RBOB length, shedding 4,954 lots for a total net long RBOB position of 47,842 contracts.
The category has been steadily reducing net length since the week ending April 3 when they were net long 94,768 contracts.
In heating oil, money managers reduced their nascent net short position 3,117 lots to 1,443 contracts. The category has been net short since the week ending June 12. Prior to that, money managers have been net long heating oil -- barring one or two brief exceptions -- going back as far as September 2008.
