The United States Commodity Futures Trading Commission has reported a rise in net positions in oil. These positions climbed to 97,000, up from the previous 78,800. This change shows a shift in the oil market. The numbers indicate more interest and activity than before.

Monitoring Market Statistics

Market participants closely watch these statistics. This helps them understand trends and potential changes in the oil market. These figures can shape future trading strategies. They provide insights into market feelings and possible price changes. There is a notable increase in bullish bets on oil from large speculators. A 23% increase in net-long positions means hedge funds and major traders are betting on a price rise soon. This is the strongest confidence we’ve seen from this group since the third quarter of last year. This positive outlook follows OPEC+’s decision to maintain its production cuts. Earlier this month, they confirmed the 2 million barrel-per-day reduction will continue until the second quarter of 2026. Their commitment is removing a critical supply factor from the market, helping to support prices. This is a shift from the uncertainty we noticed with the cartel in parts of 2025.

Global Demand and Economic Recovery

On the demand side, recent data from China’s customs agency shows crude imports have reached an 18-month high. This suggests China’s economic recovery is gaining strength after a slow 2025. It means global demand will likely be stronger than previously expected. In the US, a recent EIA report revealed an unexpected drop in crude inventories of 3.1 million barrels, tightening the domestic market. In this context, traders should see any price dips as possible buying opportunities in the coming weeks. WTI crude has recently surpassed the important $92 per barrel resistance level, a mark it couldn’t maintain during a brief rally last October. Considering long call options or bull call spreads on March and April contracts could let traders benefit from the expected price increase while managing risk. We must keep in mind the sharp price swings we saw in 2025, often caused by surprising inflation data from the US or Europe. Therefore, tracking implied volatility is essential, as a sudden increase could indicate a quick change in sentiment. Any sign that central banks might postpone their planned rate cuts this year could quickly affect these bullish positions. Create your live VT Markets account and start trading now.

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