• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 16 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 17 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Traders Rush To Dump European Diesel Contracts

  • Open interest in Europe’s main diesel futures contract has plunged by more than one-third since the beginning of October
  • Declining prices of Europe’s diesel resulted in the fastest exit of traders out of the futures contract in years

Open interest in Europe’s main diesel futures contract has plunged by more than one-third since the beginning of October as traders are getting out of their positions with the fall of diesel prices, according to exchange data quoted by Bloomberg.

The open interest of speculators and investors in European diesel has now dropped to the lowest level since 2015, the data showed.

Declining prices of Europe’s diesel resulted in the fastest exit of traders out of the futures contract in years. The lower prices have prompted many traders and investors to cut their exposure to the contract, Ole Hansen, Head of Commodity Strategy at Saxo Bank, told Bloomberg. Mostly longs have cut exposure to European diesel, but short positions were also closed, Hansen added.

The diesel exit was faster and larger than the reduction in open interest on the two main crude oil contracts, Brent and WTI.

In the week to November 30, the 15% hit to crude oil prices driven by fears of the Omicron COVID variant, cut the long position in WTI and Brent by 90,000 lots to a one-year low at 425,000 lots, Hansen said on Monday, commenting on the latest commitment of traders (COT) report from exchanges.

“The loss of momentum following the late October peak has driven an eight-week exodus out of oil contracts, culminating last week, and during this time the net length has seen a 35% or 224k lots reduction,” Hansen said.

The total eight-week reduction since October is “potentially setting the market up for a strong spec-driven recovery once the tech/fund outlook improve,” he added.

The net long—the difference between bullish and bearish bets—in Brent Crude futures fell to the lowest level since November last year, while the net long in WTI Crude was the lowest since April last year, ING strategists Warren Patterson and Wenyu Yao said on Monday.

“The flushing out of longs leaves the door open for speculators to come back into the market at these lower levels,” they noted.

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • George Doolittle on December 10 2021 said:
    "the USA will gladly import that refined product" goes without saying.

    Obviously the USA stands at the ready to finance both sides of Putin versus all of Europe: Round Two.

    Or is that Great Britain versus Europe?
    Or is that all of Europe versus the Netherlands?
    Or is that the Netherlands versus all of Europe?
    Or is that Japan versus all of Europe?
    Or is that all of Europe versus Korea?

    What's going on with Taiwan again?

    Anyhow the USA stands ready to *FINANCE ALL THE WOARS*©®™ even including to stupid Biden Wars too.

    Moar hymie jew bux the better says Hymie Dimon of the mighty JP Morgan Chase "Italian Money" Bank absolutely.

    "We give good pipeline!" absolutely.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News