MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for February 6th:

Updated at 5:00 PM ET 

HEADLINES:

— CFTC: Speculators Expand NYMEXT WTI Futures Long Position  

— Texas Regulator OKs Blackstone’s TXNM Energy Acquisition

— Analysis: ULSD Rallies in January Triggered by Perfect Storm

— Baker Hughes: North America Rig Count Up by 1 on Week

— University of Michigan: Consumer Sentiment Improves in Feb

NEWS:

CFTC: Speculators Expand NYMEXT WTI Futures Long Position

Speculators reduced bearish in NYMEX crude oil during the week to February 3, while moving divergently with gasoline, distillate and natural gas futures, Commodity Futures Trading Commission (CFTC) data showed Friday (2/6).

In NYMEX West Texas Intermediate (WTI) crude oil futures, noncommercial long positions rose by 20,280 contracts to 315,529, the CFTC said in its weekly Commitment of Traders report, while short positions in fell by 7,301 contracts to 190,964.

The difference between the two widened the noncommercial net long position by 27,583 contracts to 124,565, indicating an extension in short covering.

Open interest in WTI rose by 55,665 contracts to 2091314, suggesting the increase in net length was driven by new long accumulation as well as short covering, CFTC data shows.

In NYMEX RBOB gasoline futures, noncommercial long positions fell by 2,279 contracts to 116,257, while short positions rose by 503 contracts to 39,826. As a result, the noncommercial net long position narrowed by 2,782 contracts to 76,431 as new short positioning outpaced gains on the long side.

Open interest in gasoline increased by 4,820 contracts to 469,165, pointing to renewed speculative participation.

In NYMEX ULSD futures, noncommercial long positions slipped by 5,089 contracts to 62759, while short positions declined by 6,533 contracts to 37,480. The changes lifted the noncommercial net long position by 1,444 contracts to 25,279, supported by short covering amid expanding participation.

Open interest in ULSD climbed by 27,423 contracts to 395,075 during the reporting week, indicating improving engagement alongside a more constructive speculative tone.

In NYMEX natural gas futures, noncommercial long positions dropped by 1,013 contracts to 215,099, while short positions rose by 7,691 contracts to 387,409. The moves narrowed the noncommercial net short position by 8,704 contracts to 172,310. Open interest rose by 30,040,195 contracts to 1,655,983, reflecting continued position liquidation amid volatile price action and lingering bearish sentiment.

Overall, the CFTC data show speculative positioning turning less bearish on crude oil, while resorting to mixed positioning in gasoline, distillates and natural gas positioning amid adjustments in risk exposure.

Texas Regulator OKs Blackstone’s TXNM Energy Acquisition

The Public Utility Commission of Texas on Thursday (2/6) approved a unanimous settlement filed by Texas-New Mexico Power Company, clearing the way for Blackstone Infrastructure to acquire TXNM Energy.

The settlement includes $45 million in rate credits for customers of Texas-New Mexico Power Company, TXNM’s utility subsidiary, according to a statement from the regulator.

The transaction represents Blackstone Infrastructure’s expansion into southwestern U.S. electric utilities, serving nearly 800,000 customers across Texas and New Mexico.

Blackstone has committed to funding TXNM’s five-year capital expenditure plans and maintaining local operational control. The deal previously received approval from TXNM shareholders in August 2025 and cleared federal antitrust review.

However, the merger still requires additional regulatory clearance from the Federal Energy Regulatory Commission, Nuclear Regulatory Commission, and New Mexico Public Regulation Commission before closing.

Editor’s note: This was created with AI based on information from TXNM Energy

Analysis: ULSD Rallies in January Triggered by Perfect Storm

The front-month ULSD futures contract traded on the New York Mercantile Exchange recorded its largest monthly rally in more than three years in January, driven by a perfect storm of inclement weather, rising crude prices and low inventories.

Front-month ULSD futures surged 28% in January, virtually matching the October 2022 run-up of 28.4%.   

The rally came on the back of the Winter Storm Fern in January, which also elevated to multi-year highs the premium for front-month ULSD contracts over those meant for later delivery. The price spike was triggered by an Arctic blast from the East Coast to Midwest and South that blew past cold forecasts, catapulting in massive heating demand that drew down distillate stocks.

Backwardation has eased since, as nationwide diesel stocks recovered to near long-term averages. But historically low inventories on the U.S. East Coast are setting the stage for another potential weather-induced price spike.

Distillate fuel oil inventories started the year close to 4% below the five-year average and nearly 10% below the ten-year average, according to U.S. Energy Information Administration data. 

At the same time, domestic demand was close to long term averages, while internationally short supply pulled more distillate barrels on the export market than in past years.

Additional price support came from a 14% crude oil rally in January as fears of a U.S. military attack on OPEC’s fourth-largest producer Iran led to an increase in supply risks.

The combination of these factors set the stage for wild price swings in the event of a supply outage or a demand spike.

While the impact to refining was rather negligible, distillate fuel oil demand rocketed in the wake of January 23-27 Winter Storm Fern. 

The storm hit the U.S. East Coast hardest, where heating oil remains a key heating fuel and inventories were at their lowest seasonal level among the five PADDs.

Consequently, ULSD’s prompt spread shot up to $0.247 gallon, the highest in more than three years, and the six-month spread reached a 28-month high of $0.465 gallon. The front-month ULSD contract climbed to a 21-month high, surpassing the rally in late October and early November after a European Union (EU) proposal to ban imports of fuels made from Russian crude. That EU move coincided with historically tight distillate stocks on the continent after a global refining lull.

ULSD calendar spreads are back now to the mid-January point as nationwide distillate fuel oil inventories return to long-term averages and above year-ago levels.

The situation on the U.S. East Coast, however, remains more precarious than elsewhere. PADD 1 distillate fuel oil stocks fell 3.2 million bbl in the week of the winter storm, down 9.3%, and are now close to 16% below the five-year average. DTN’s weather forecast sees colder-than-usual temperatures along the entire East Coast in the days ahead – enough to lift demand, but well short of carrying the potential for a repeat of the recent price spike. 

Still, inventories are likely to continue their decline as U.S. refiners enter seasonal maintenance, leaving energy markets vulnerable to another rally driven by weather-induced demand surges or supply outages.

Baker Hughes: North America Rig Count Up by 1 on Week

North American drilling activity rose by one rig this week, adding to last week’s three-rig climb, Baker Hughes’ latest rig count report released Friday (2/6) showed.

The combined North American rig count stood at 779 versus the 778 in the prior week. Year-over-year, rigs for the U.S. and Canada combined were down 56 from the 835 actively deployed a year ago.

Canada’s rig count fell by four from the prior week to stand at 228. The U.S. rig count rose by five to 551. The difference between the two resulted in the net one rig gain for North America.

By location, land-based rigs in the U.S. rose by three week-over-week to 532. Offshore rigs advanced by two to 16. Inland water rigs were unchanged at three.

By energy source, oil-directed rigs in the U.S. rose by one to 412. Gas-directed rigs climbed  by five to 130. Miscellaneous rigs, a category that includes rigs drilling injection wells, fell by one to nine.

By trajectory, horizontal rigs in the U.S. climbed by five to 483. Vertical rigs slid by two to 13, while directional rigs climbed by two to 55. Year-over-year, the U.S. rig count was lower by 35 from the 586 actively deployed a year ago.

University of Michigan: Consumer Sentiment Improves in Feb

University of Michigan: Consumer Sentim

02/06/2026 10:00

VIENNA (DTN) — U.S. consumer sentiment continued to improve in February, with the Index of Consumer Sentiment rising 0.9 points to a six-month high 57.3, according to preliminary data from the University of Michigan’s Surveys of Consumers released Friday (2/6) morning. It marked the third consecutive monthly improvement for the index, which plummeted in November to its lowest reading in three and a half years.

Despite the move higher, the index remains down 7.4 points, or 11.4%, year-over-year.

For January, it was revised to 56.4 from a prior reading of 54.

The Index of Consumer Expectations, which reflects the economic outlook over the next 12 months, fell 0.4 points to 56.6. That was 0.7% lower month-on-month and down 11.6% when compared with the same month of last year. 

The Current Economic Conditions Index, measuring sentiment on personal finances and buying conditions, rose 2.9 points to 58.3. But year-on-year, that index was also down, by 11.3%.

“While sentiment is currently the highest since August 2025, recent monthly increases have been small — well under the margin of error — and the overall level of sentiment remains very low from a historical perspective,” said University of Michigan’s Surveys of Consumers Director Joanne Hsu.

“Concerns about the erosion of personal finances from high prices and elevated risk of job loss continue to be widespread,” she added.

While year-ahead inflation expectations fell by 0.5 percentage points to 3.5%, the lowest reading since January 2025, they are still above readings seen in 2024.

Long-run inflation expectations, meanwhile, rose for a second month in a row, up 0.1 points to 3.4%.