Crude Oil Volume In 2015-2016 Spikes Over 100%

A quick look at the monthly Crude Oil chart shows a very interesting development over the past four years. You can see volume figures in 2012-2014 averaged around 5 million contracts a month. Then in 2015 when Crude Oil prices traded between $40 and $60 a barrel, volume spiked to 8 million contracts over the year. With prices significantly lower, Crude Oil volume for 2015 was ahead 60% from the previous three years. Someone was buying Crude Oil for a reason.

Crude Oil Volume - Monthly Chart

Then in 2016, volume swelled again to an average of 11,650,000 contracts a month. That was another 45% increase in volume from 2015. And it is record volume for the Crude Oil contract. Again, someone is buying Crude Oil for a reason…and that is with Iran coming back online.

The point of my findings is this. From January 2015 to May 2016, with Crude Oil trading between $26 and $60 a barrel, volume doubled in that period. Someone obviously thinks Crude Oil below $60 a barrel is cheap.

There are plenty of rumors out there, but there are also plenty of bearish Crude analysts out there too. I prefer to stand alone. I always have and always will.

I personally think all the talk we are hearing about a weak world economy is just that. All talk. The bears are out in force trying to talk the economy down, but the Crude Oil market keeps saying, “We’re not having any of that.” The silent majority is letting the bears do all the talking while they are doing all the buying. Crude Oil is going higher for a reason. And Wall Street is going higher with it…A LOT BLOODY HIGHER!!!

Be careful what you wish for world central bankers. When the price of Crude Oil goes up, the price of all goods go up. Thanks to a weakening U.S. Dollar, inflation may accelerate a little quicker than most expect.

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Tony LaPorta

Tony LaPorta Futures Maven

Tony LaPorta has been active in the futures industry for over 36 years including membership at the Chicago Mercantile Exchange (CME) and the London International Financial Futures Exchange (LIFFE). Tony is an ex pit-trader turned screen-trader.

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