Crude oil speculative positions rise sharply following price fall

While the commodity has fallen significantly in the short term, reports of slowing global growth and likelihood of Opec cutting output in its December 6 meet aren't allowing recovery

The sharp fall in Crude oil has increased interest in the derivatives market with crude contracts and open interest rising on the Multi Commodity Exchange. Despite the sharp fall in prices, volumes have not fallen, indicating that they have, in fact, been rising as well. Apart from crude oil futures, the option market has seen a sharp rise too.

Crude prices in terms of the Indian basket peaked at over $86 per barrel in first week of October and then started falling, initially on reports that US would relax Iran sanctions. This ultimately did happen and India and some countries