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Speculators turn bullish on Oil, Option traders most bearish on Brent

FXStreet (Mumbai) - Crude oil prices continue to remain weak today with the Brent trading 0.70% lower at USD 92.17/barrel and the WTI Crude trading 0.50% lower at USD 89.90/barrel.

However, the slide in Crude oil prices may have started attracting a bargain demand as speculators turned bullish on the crude prices. As per Commodity Futures Trading Commission (CFTC) data, Hedge-fund managers and other large speculators increased their net-long position in crude-oil futures in the week ended Sept. 30.

Meanwhile, slowdown in China and ample supplies from the Oil and Petroleum Exporting Countries (OPEC) pushed Brent Crude to a two-year low last week. The bearish sentiment is evident from the options data which shows Put options trading at a bigger premium over call options since February. “The options market certainly is signaling further downside,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy.

Consequently, the prices are likely to remain under pressure ahead of the Crude inventory data from the Department of Energy (DOE), due for release tomorrow. Brent Crude is trading.

Brent Technical levels

Brent has a support of 91.25 (yesterday’s low), below which prices can slump to 89.58 levels. On the other hand, prices may rise to 94.00 if the resistance of 93.21 is taken out.

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