Hedge Funds Bail Just Before OPEC-Driven Oil Rally Vanishes

8 May 2017   Prices

Money managers least bullish on WTI crude in five months Longs fell, shorts surged just before oil took near 5% tumble Hedge funds jumped out of the oil market just in time. Before West Texas Intermediate crude nosedived on Thursday, wiping out the rally driven by OPEC’s deal, money managers slashed bets on rising prices by 20 percent, according to U.S. Commodity Futures Trading Commission data. Now they may soon be well poised to start betting on the next rally. “We are moving toward a positioning where these money managers are no longer over-invested,” Tim Evans, an analyst at Citi Futures Perspective in New York, said by telephone. “This opens up the potential for them to start buying again.” Oil collapsed Thursday amid concerns that the Organization of Petroleum Exporting Countries has failed to ease a supply surplus as U.S. shale drillers ramp up output. Shares of U.S.-based producers […]

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