CFTC: WTI Leads Energy Short Covering in Week to Jan. 20


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- Speculators reduced bearish exposure across much of 
the NYMEX energy complex during the week ended January 20, led by aggressive 
short covering in crude oil and distillates, while positioning in gasoline and 
natural gas moved in more divergent directions, according to the Commodity 
Futures Trading Commission's Commitment of Traders report released Friday 
(1/23).

   In NYMEX West Texas Intermediate crude oil futures, noncommercial long 
positions edged down by 1,327 contracts to 284,809, while short positions fell 
sharply by 21,991 contracts to 206,017. The moves widened the noncommercial net 
long position by 20,664 contracts to 78,792, reflecting substantial short 
covering during the reporting week.

   Open interest declined by 54,430 contracts to 1,964,359, suggesting the 
increase in net length was driven primarily by traders exiting bearish 
positions rather than new long accumulation, CFTC data shows.

   In NYMEX RBOB gasoline futures, noncommercial long positions rose modestly 
by 305 contracts to 109,470, while short positions increased by 2,052 contracts 
to 38,690. As a result, the noncommercial net long position narrowed by 1,747 
contracts to 70,780, as new short positioning outpaced gains on the long side.

   Open interest increased by 5,901 contracts to 456,118, pointing to renewed 
speculative participation even as sentiment softened relative to other energy 
contracts.

   In NYMEX ULSD futures, noncommercial long positions slipped by 418 contracts 
to 62,563, while short positions declined by 1,951 contracts to 46,519. The 
changes lifted the noncommercial net long position by 1,533 contracts to 
16,044, supported by short covering amid expanding participation. Open interest 
climbed by 27,423 contracts to 395,075 during the reporting week, indicating 
improving engagement alongside a more constructive speculative tone.

   In NYMEX natural gas futures, noncommercial long positions dropped sharply 
by 29,132 contracts to 241,131, while short positions fell by 21,243 contracts 
to 434,621. The moves narrowed the noncommercial net short position by 7,889 
contracts to 193,490, as traders on both sides reduced exposure. Open interest 
decreased by 21,195 contracts to 1,614,025, reflecting continued position 
liquidation amid volatile price action and lingering bearish sentiment.

   Overall, the CFTC data show speculative positioning turning less bearish 
across parts of the energy complex, led by crude oil and distillates, while 
gasoline and natural gas positioning reflected more mixed conviction as traders 
continued to adjust risk exposure.




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