The price of oil could have further to fall as hedge funds, and investors re-position following a record buildup in net long oil futures according to a report from JP Morgan’s Nikolaos Panigirtzoglou published at the end of last week.
The report warns of “commodity downside” due to persistent near-record net long futures positioning as “a pending normalization/mean reversion of spec positions in commodity futures has begun.”
More Volatility Ahead For Oil As Funds Unwind
As I reported the end of last week, even though hedge funds and money managers cut their combined net-long position in the three month Brent and WTI futures and options contracts by 61 million barrels in...
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