Money managers have reduced net length in NYMEX crude futures for the third consecutive reporting period, according to US Commodity Futures Trading Commission data Friday.
The category reduced net length by 6,327 lots to 135,000 contracts for the weekly reporting period ended Tuesday, by adding 4,252 shorts and shedding 2,015 longs.
NYMEX front-month crude rose 50 cents/barrel over the reporting period. Meanwhile, over the past three reporting periods, money managers have reduced net long exposure to crude futures by 57,474 contracts. Crude futures have fallen $2.90/b over that timeframe.
Swap dealers reduced their net short position in crude futures by 7,083 lots to 198,409 contracts, shedding 10,069 shorts and 2,986 longs.
Producer/merchants added a mere 320 lots to their net short position of 18,613 contracts, but this disguises large moves in both longs and shorts. The category shed 13,731 longs and 13,411 shorts.
This past reporting period marks the first increase to their net short position since the reporting period ended August 21, pulling it off of an all-time low net short position of 18,293 contracts for the reporting period ended October 2.
Other reportables, meanwhile, have been building up a sizable net long position in crude futures. The category added 4,045 net long lots for a total of 78,598 contracts. This is up from 13,068 net long contracts in late-June.
In RBOB futures, money managers reduced net length by 1,838 lots to 81,555 contracts, shedding 2,469 longs and 631 shorts.
Front-month RBOB futures were volatile over the reporting period spanning October 2-9, having settled at a low of $2.7995/gal on October 3. They then rose to $2.9526/gal on October 5, only to fall to $2.8931/gal on October 8. Finally, RBOB settled at $2.9587/gal on October 9, netting a near-9 cent/gal gain over the reporting period.
Producer/merchants reduced their net short position by 2,414 lots to 108,897 contracts, adding 4,004 longs and 1,590 shorts. The category remains the largest participant in RBOB futures, with 57% of the market. Meanwhile, producer/merchants added to their net short position in heating oil futures by 6,064 lots to 81,357 contracts, adding 6,992 shorts and 928 longs.
Front-month heating oil futures have risen 7.77 cents/gal over the latest reporting period.
Producer/merchants have been steadily building this net short position since July, up from 43,760 net short contracts for the reporting week ended July 17.
Money managers added net length in heating oil futures, up 1,291 lots to 27,384 contracts. The category added 1,048 longs and shed 243 shorts.
