Oil Gains Longest in Five Years

Oil logged surprising eighth day of gains, which is longest in five years. U.S. West Texas Intermediate (WTI) crude has fallen nearly 13% from $46.84 per barrel on Monday. This happened as the global supply glut and a lack of production cuts have driven down the prices. After five straight weeks of losses, oil prices rose 7% last week. The Commitments of Trader data, showed short positions nearly doubled last month, which was a net long position in oil futures the smallest since August 2016.

Market positioning is mostly used as a contrarian indicator, indicating that increased bets against oil make other traders want to get long. The rise came as the total number of producing rigs fell last week since January. CNBC’s oil survey said that OPEC has lost control of the market & crude will likely to set at a bottom of $40 per barrel.

Longest five-year oil gain was logged on the eighth day. U.S. West Texas Intermediate (WTI) fell from $46.84 per barrel to 13% on Monday. This happened as the global supply glut and a lack of production cuts have brought down the prices. After five straight weeks of losses, oil prices rose by 7%. The Commitments of Trader data showed short positions that nearly doubled last month. This was net long position in oil futures, the smallest since August 2016. Market positioning is used as a contrarian indicator that increased bets against oil that makes other traders want to get long. CNBC’s oil survey said OPEC has lost control of the market & crude will set at a bottom of $40 per barrel.