November crude oil prices trended lower during the overnight and initial morning hours, pressured in part by a weaker Asian economic growth outlook from the World Bank. Some traders also indicated that the crude oil market faced weakness in global equity markets, gains in the US dollar and a Euro zone finance ministers meeting today to discuss Spain's debt situation. Meanwhile, the downside action in the crude oil market might have been limited by mounting tensions between Turkey and Syria, as well as concerns over Iran's nuclear program. Some traders feared hat unrest in Syria could be spreading to neighboring nations, which keeps a measure of geo-political risk premium alive in the crude oil market. The Commitments of Traders Futures and Options report as of October 2nd showed non-commercial traders were net long 278,059 contracts, a decrease of 13,828. Non-commercial and nonreportable traders combined held a net long position of 287,225 contracts, for a decrease of 20,617 in their net long positioning. The selling trend was also seen by money managers, which slashed speculative net long positioning by 11,590 contracts.
*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
Copyright CME Group All rights reserved.