⁍ Hedge funds sold crude oil and refined products at the fastest rate for more than two years in the first week of September.


⁍ The summer trading lull ended abruptly and bullishness towards oil evaporated.


⁍ Funds have cut their combined net long position in the six contracts to 443 million barrels.


– Last week, hedge funds and other money managers sold 171 million barrels of crude oil and refined products—the highest level of sales since July 2018, reports Reuters. That’s down from 87 million barrels long positions and 84 million barrels short positions in the six most important petroleum futures and options contracts in the week ending Sept. 8. The reason? The market “reached a tipping point and gentle selling pressure turned into a flood,” writes John Kemp. “The resurgence of coronavirus, signs OPEC+ countries are becoming weary of output cuts, and the lack of major disruption to US oil production from Hurricane Laura were all likely triggers, singly and in combination, the hedge fund community swung from being neutral or even mildly bullish towards oil in late August to strongly bearish by the end of the first week this month.”



Source: https://www.reuters.com/article/global-precious/precious-gold-steady-as-dollar-softens-investors-eye-fed-meeting-idUSL4N2GC05Z