The hedge funds have reduced their fraction of long positions from 30% of the longs to 23%. The big speculators dropped 3% from 11% to 8% of the longs but remained 11% of the shorts. Commercial banks, acting on their own account, it appears, have become the largest speculative holder of crude oil, holding some 313,000 contracts not balanced by shorts. Refiners are holding some 392,000 contracts.
In summary, refiners are long 26%, banks are long 44%, funds are long 23% and large specs are long 8%. That is, of course, 1% too many, but the difference is due to rounding.
It isn't really news,but... Obama can reduce the price of crude oil simply by instructing the CFTC to remove banks (ridiculous) status as hedgers. Were he to do that tomorrow, with a 30 day window for the banks to disgorge the contracts they hold, prices would drop at least $20 per barrel.
In summary, refiners are long 26%, banks are long 44%, funds are long 23% and large specs are long 8%. That is, of course, 1% too many, but the difference is due to rounding.
It isn't really news,but... Obama can reduce the price of crude oil simply by instructing the CFTC to remove banks (ridiculous) status as hedgers. Were he to do that tomorrow, with a 30 day window for the banks to disgorge the contracts they hold, prices would drop at least $20 per barrel.
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