Large energy speculators continued to decrease their bullish net positions in the WTI Crude Oil futures markets last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Monday which was a delay due to former President George H.W. Bush’s funeral last week. The non-commercial futures contracts of WTI Crude Oil futures, traded by large speculators and hedge funds, totaled a net position of 330,146 contracts in the data reported through Tuesday December 4th. This was a weekly lowering of -17,975 net contracts from the previous week which had a total of 348,121 net contracts.
Customer loyalty shifting. Four primary market forces identified.
Industrial distributors are facing changing market conditions that are challenging their long-standing business models. The UPS (NYSE: UPS) Industrial Buying Dynamics study, conducted by global research firm TNS, revealed buyers are increasingly willing to purchase outside of their existing supply base. The study identified four significant forces that are impacting how the relationships between industrial distributors and their customers are being redefined.
According to the UPS study, 38 percent of online industrial product buyers sourced products from a new supplier (vs. 34% in 2013) and 72 percent said they would shift spending to a distributor with a more user-friendly website.
“Customer loyalty today is built on a different foundation than the one distributors have built over generations,” said Brian Littlefield, UPS director of industrial manufacturing and distribution marketing. “Once price and quality standards are met, buyers are willing to explore vendors that better fit their needs, whether for a more convenient website, a better price, or simply someone who quickly answers product questions.”