September crude oil prices came under pressure during the overnight and early morning hours, in part due to a breakdown in US budget talks over the weekend. Some traders suggested that this has elevated the level of uncertainty in the crude oil market and fostered a risk-off mentality this morning. Fears over a potential US debt default have some players concerned over reduced government spending that could weigh on US oil demand. The Commitments of Traders Futures and Options report as of July 19th for Crude Oil showed non-commercial traders were net long 202,274 contracts, an increase of 7,828. The nonreportable traders were net long 31,071 contracts, an increase of 10,114. Non-commercial and nonreportable traders combined held a net long position of 233,345 contracts, an increase of 17,942 on the week.
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