Crude is running higher this evening, ingratiating the speculators who’ve been betting long. As such, futures in the United States have increased their gains, now higher by 72.
This move in crude was not of the black swan varietal. Recent bets in the futures markets, according to the CFTC, have indicated a growing sentiment towards bullish price action.
Speculators’ long position in WTI rose by 1,152 contracts to 302,384 futures and options, according to CFTC data. Shorts, or bets that prices will decline, slipped 2.1 percent. Net-longs increased 5 percent to a three-month high. Funds took the opposite stance with Brent, pulling back net-long positions by 9.2 percent to 265,332 contracts in the week to Feb. 9, according to ICE data.
The dollar is weakening against the by 0.16%, in an otherwise quite forex session. The bond market is showing losses, but not nearly to the degree one would expect, considering the risk on nature of equity markets. U.S. 30yr bonds are yielding 2.62%, up less than 1%.
Gold is a singular outlier, off by 2.5%, well deserving of profit taking, all things considered.
If you enjoy the content at iBankCoin, please follow us on Twitter
The rise in oil is like the blade reaching the top of the frame…
Companies reliant on crude input are buying/have bought here. These guys are going to report all time high record earnings.
D-Fly – Do you have a prediction or tipping point when oil and markets start deviating from each other? We have seemed to run in such a correlation. Thanks in advance. Long $HES calls.