Funds upped net-length in Brent and WTI before oil prices slid: CFTC

Quantum Commodity Intelligence - Funds added length in WTI and cut shorts in Brent last week, building net-length in both crude futures, the Commitment of Traders Report for ICE and Nymex.

They also cut bullish bets in European Low Sulfur Gasoil (LSGO) futures on ICE for the second week in a row.

But the data for the week ending July 13 preceded the slump in oil prices starting last  Wednesday after news broke that Saudi Arabia and the United Arab Emirates agreed on a new baseline deal for the UAE, paving the way for more OPEC+ supplies.

That news coincided with a bearish US government oil inventory report that showed product stocks grew more than crude stocks fell.

Prior to that, funds had cut around 7,850 short lots in Brent futures and options on ICE, far more than the build of around 1,150 lots.

Net-length in Brent was boosted around 9,000 lots to over 312,600 lots, the highest since May 4.

In WTI on Nymex, funds added 7,824 long lots in WTI futures and options compared to adding just 203 short lots, boosting net length.

This was the first build in net-length for three weeks and brought net-length in the US crude future back to levels seen around June 1.

Meanwhile, funds further reduced exposure to higher prices for Low Sulfur Gasoil futures and options on ICE, cutting around 9,900 long lots compared to only 4,850 short lots.

Net-length in LSGO dropped 5,000 lots over the week, adding to the 7,500-lot drop a week earlier, and bringing the total net length to 141,260 lots, the lowest since May 25.

Money managers also added 4,775 long lots in RBOB gasoline futures and options while short positions barely moved.