2006-2022 | Weekly | Commodity Trading Commission

The contract size for WTI Crude Oil is 1,000 barrels.


The participants in the WTI Crude Oil market are Hedgers, Managed Money, and Retail Investors.

Hedgers comprise Producer/Merchant/Processor/User where they predominantly engage in the production, processing, packing, or handling of a physical commodity and use the futures markets to manage or hedge risks associated with those activities.

Managed Money comprises a registered commodity trading advisor (CTA); registered commodity pool operator (CPO); or an unregistered fund identified by CFTC. These traders are engaged in managing and conducting organized futures trading on behalf of clients. Retail Investors are non-professional market participants who generally invest smaller amounts than larger, institutional investors.

 

The measurements used include open interest, net position, and Long/Short Position of Money Manager.

 

How to use this data

As Open Interest increases, more money is moving into the futures contract and vice versa. Open Interest represents the total number of open contracts and volume is the total number of contracts that have changed hands in a one-day trading session. It is important that observe the relationship between open interest and volume. By using open interest, traders are able to forecast the trends and momentum opportunities, also augur the market timing on trades. According to the theoretical base, rising in volume and open interest reveal the continued movement up or down. In other words, when the volume and open interest decline, the theory perceived that the momentum and movement are decelerating, and the direction of prices will soon reverse.

 

A Long Position occurs when a market participant owns the contracts while a Short Position occurs when the participant owes the contracts to someone and does not own them. The Net Position is the difference between the long and short position, a positive value indicates a net long position while a negative value indicates a net short position.

 

The net position of Managed Money generally reflects the price trend of the futures, either uptrend or downtrend.

The net position of Hedgers generally reflects an inverse position of price trends as this category of participant enters into a position to hedge against the price movement, not to speculate.

The net position of Retail Investors is always an inverse indicator of the price trend. Retail investors tend to increase their long position when prices are falling and add on to their short position when prices are rising.

Long/ Short ratios can be used to estimate changes in market sentiment within specific time-frames.