Oil rebounds as long positions evaporate, shorts climb

June 27, 2017 | Daily JAM, Morning Briefing, Short Term, Volatility, You Might Have Missed | 0 comments

Hedge funds and other money managers have cut their long positions on crude futures to the lowest level since November for the week ended on June 20. At the same time short positions, which are bets that oil prices will fall further,  have climbed to near record highs. The ratio of long positions to short positions has fallen to around 2-to-1 from a high of 12-to-1 in February.  This all suggests that we’re at something like a short-term bottom in the price of oil.