CFTC reports an increase in US oil net positions from 57.4K to 58.1K

    by VT Markets
    /
    Jan 17, 2026

    Slight Increase in Net Long Positions

    The small rise in net long positions indicates that speculators are slowly increasing their bullish bets on oil. While this change isn’t large, it shows that the positive feelings that started in late 2025 are still growing. This could mean that momentum is building for oil prices to rise. Recent economic reports support this optimism. In December 2025, consumer spending was better than expected, and a jobs report from last week showed that the U.S. economy is still strong. Worldwide, China’s industrial output grew by 4.8% in the fourth quarter of 2025, exceeding predictions and suggesting a steady demand for energy imports. On the supply side, stability remains crucial. OPEC+ upheld its production cut agreement during its December 2025 meeting, which helps keep prices steady, similar to their actions throughout 2024. Additionally, U.S. crude oil inventories have decreased for three weeks in a row, with the latest data from the Energy Information Administration showing a drop of 2.5 million barrels, tightening the market further.

    Derivative Strategies

    In this environment, our derivative strategies should focus on selling cash-secured puts below the current market price for March futures contracts. This can help us benefit from high volatility and a stable price floor. We can also consider starting bull call spreads on April WTI contracts, aiming for a price increase toward the $85 level, the highest seen in October 2025. This strategy allows us to gain from a gradual price rise while protecting us from sudden drops. Create your live VT Markets account and start trading now.

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