September crude oil drifted lower during the overnight and initial morning hours following Friday's 4.9% surge. The outside market tone was somewhat mixed for the crude oil market to start, with slight gains in equity markets and gains in the US dollar. While the crude oil market continued to draft support on the prospect of reduced North Sea export flows in September, talk that oil exports out of Sudan could return soon seemed to offer up a negative this morning. The market will also keep an eye on Tropical Storm Ernesto, which is expected to reach lower Gulf of Mexico region later this week. The Commitments of Traders Futures and Options report as of July 31st showed non-commercial traders were net long 219,693 contracts, a decrease of 12,550. Non-commercial and nonreportable traders combined held a net long position of 223,966 contracts, for a decrease of 7,812 in their net long positioning.
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