CFTC reports a decrease in American oil net positions from 58.1K to -44.8K

    by VT Markets
    /
    Jan 24, 2026
    The CFTC, or U.S. Commodity Futures Trading Commission, reports a significant drop in oil net positions. These positions have decreased to -44.8K from a previous high of 58.1K, showing less confidence in the oil sector.

    Change in Speculative Oil Positions

    There has been a big change in speculative oil positions. They switched from a net long of 58.1K to a net short of -44.8K. This means that large traders, like hedge funds, are no longer betting on rising oil prices; instead, they expect prices to fall sharply. The quickness of this shift shows a strong belief that prices will go lower. This negative outlook is backed by recent economic data. The latest EIA report revealed that U.S. crude inventories increased by 4.1 million barrels, much more than expected, indicating weaker demand. Additionally, the purchasing managers’ index (PMI) data for December 2025 from Europe and China dropped below 50, pointing to a slowdown in manufacturing worldwide. It’s important to note the sharp price drop in the second half of 2025, which followed a similar but slower shift in positions before WTI crude prices fell by 20%. This current change is much quicker, suggesting we might see a faster and more volatile decline in the coming weeks. Traders should be ready for this historical trend to occur again, possibly with even greater intensity.

    Strategic Response to Market Conditions

    In light of this situation, we recommend strategies that take advantage of falling prices. This includes buying put options for direct exposure to potential price drops or creating bearish credit spreads to profit from declining or stagnant prices. It’s crucial to monitor key support levels, as breaking these could lead to further automated selling. Create your live VT Markets account and start trading now.

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