Oil prices fell yesterday for the fourth consecutive day and still find themselves under selling pressure. Brent is falling to a 6-month low of $52.3 per barrel this morning, while WTI is priced at less than $47 per barrel.



The last time it was this cheap was four months ago. At 214,000 contracts, the level of speculative net long positions in Brent is still comparatively high, as compared both with recent years and with the current level of net long positions in WTI, which are a good 100,000 contracts lower.



According to data published yesterday by the ICE, speculative net long positions in Brent declined by 12,900 contracts in the week to 21 July for the first time in four weeks. The reduction was primarily due to the cut in long positions.



In the three preceding weeks, speculative (net) long positions in Brent had been sharply expanded for no obvious reason despite tumbling prices and a visible withdrawal of investors from WTI.



"Falling equity markets around the world are generating negative sentiment among market participants, who are therefore likely to continue offloading their oil investments. There is still correction potential for Brent", says Commerzbank.