Record-high net short positions in gasoil

Net short positions in gasoil have now even reached a record-high level of 24.2 million contracts. The pessimistic sentiment among investors is being fuelled by the persistent oversupply. 

As observed earlier, OPEC also produced significantly more crude oil than the market needed in October. The decrease in US oil output is not enough to offset this, so far at least. 

"Adding to the gloomy outlook comes news from industry sources that Qatar, Abu Dhabi and Saudi Arabia are apparently planning to postpone non-urgent maintenance work until next year so as to keep oil production at as high a level as possible and to cut costs ahead of a possible sharp rise in Iranian oil exports next year", notes Commerzbank.