The combined net-long in WTI (-14k) and Brent (+18k) crude oil rose by 4k lots to 410,493 lots with speculators going in opposite directions for a second week. The net long has hardly moved during the past three months with Brent struggling to break away from $60/b and WTI away from $55/b. The improved technical outlook towards the end of last week however could add support to prices into a week full with oil market related events and news.
First up the market has to gauge the impact - if any - of the weekend announcement from Saudi Arabia that Prince Abdulaziz has taken over the energy ministry from Khalid Al-Falih. While we expect limited market impact it may still highlight the growing unease about an oil price stuck more than 20 dollars below the Kingdom's desired level. The new energy ministers will be attending the World Energy Congress (@WECongress) in Abu Dhabi before joining the OPEC+ JMMC meeting on Thursday. Apart from the weekly US stock report the three major forecasters EIA tomorrow, OPEC on Wednesday and IEA on Thursday while all publish their monthly oil market reports.
RBOB Gasoline saw the biggest change with a 31% reduction cutting the net-long to 41,807 lots, a two-year low.