The long slide of spot WTI finally came to an end at the start of June '10, having fallen by 25% since April-6th. During this long downward drift of the US benchmark crude, the large-scale speculators increased their short positions on NYMEX (see table below) and reduced the long contracts by proportionately large amounts (23% and –15% respectively), indicating by their actions that they expected oil prices to fall further, as did the long non-reporters (small-scale speculators with long positions). Surprisingly, both groups of active hedgers — the so-called commercials — expected oil prices to rise at a time when spot WTI was falling steadily. The consumer-hedgers in particular increased their long positions substantially during this period (by almost 13%), expecting the oil price's next step to be upwards.
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