October crude oil came under pressure overnight, burdened by a weaker macroeconomic tone, slumping global equity markets and fears that Greece may be closer to default. Additionally, weekend reports indicated that Chinese oil demand slumped in August, compared to July, to the lowest level for 2011. There were also reports from OPEC earlier this morning that lowered their 2011 and 2012 global oil demand forecasts due to a slumping world economy. The cartel estimated an increase in their August production of 1.6%. The Commitments of Traders Futures and Options report as of September 6th showed non-commercial traders were net long 211,418 contracts, an increase of 10,809. Non-commercial and nonreportable traders combined held a net long position of 222,819 contracts, an increase of 12,447.
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