Crude Oil Prices

dan_s · Post by **dan_s** » Mon Oct 24, 2016 6:50 pm

Short positions in crude oil futures and options held by producers, merchants, processors, and users (PMPU) totaled 608,261 as of October 11, 2016, according to the CFTC’s Commitments of Traders Report. The PMPU category represents futures and options contracts held by commercial businesses that trade the physical commodity. According to EIA, this represents a nine-year high for short positions in crude oil.

This sets up a Mother of a Short Covering Rally if there is any unplanned supply outage, U.S. crude oil inventories continue to decline or OPEC announces a real agreement to curb supply.