July crude oil prices fell to a new low for the move overnight but have since reversed into positive territory. Some traders indicated that gains in the crude oil market came from an improvement in risk-taking sentiment, with a rally in global equity markets and weakness in the US dollar. It is possible that some of the early support in the crude oil market came from hopes for more economic stimulus out of China. Meanwhile, a weekend G-8 meeting indicated willingness to release strategic oil reserves should the situation involving Iran put further pressure on global supplies. The Commitments of Traders Futures and Options report as of May 15th showed non-commercial traders were net long 248,634 contracts, a decrease of 686. Non-commercial and nonreportable traders combined held a net long position of 270,061 contracts, for a decrease of 4,088 in their net long positioning.
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