Despite suffering another week of steep price losses, the energy sector only saw modest changes. WTI crude oil was bought for a third week to the tune of 7k lots while selling of Brent crude oil extended to a fourth week. The selling of 21k lots took the net-long to just 57k lots, the lowest since November 2014. Overall the combined net-long reached 187k lots, a near 8 year low. While the WTI crude oil position has risen by 7k lots during the past four weeks, Brent has seen its net-long tank by 231k lots.
This divergence is however likely to correct as the US become the epicenter of the corona virus outbreak. With that demand will suffer and stocks rise. Up until now Brent crude oil, the global benchmark, has been the contract used to reflect the negative price impact of a Saudi price war, slump in demand and spike in stocks.
Natural gas saw continued buying with the net-short having been cut by 88% during the past six weeks. All of this happening while the price continues to linger near the lowest level in almost 25 years.