Funds Continue to hold Record Length in Crude…

Money managers increased their net long position in crude oil to another new record high last week of 413,637 contracts, up 23,299 contracts on the week.  This now accounts for 15.2% of total open interest which is actually below the previous record of 16.3%.  Another metric which analysts watch for signs of extreme positioning is the long to short ratio of the managed fund positions.  As of last week, the ratio stood at 11.5:1 which is the largest since July 2014, but well below the record levels achieved back in 2012 over 22:1.  In addition, the ratio has been steadily climbing since December without price being able to move out of its current range.  This could be viewed as price negative as the large build up in managed fund long positions hasn’t been able to carry price higher.

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