Oil Shorts Soar as Market Shakes Off Saudi Arabian Disruption - Bloomberg:
Oil investors piled into short positions as oil markets shook off the disruption from attacks on Saudi Arabian oil facilities.
Bets that West Texas Intermediate crude prices would decline surged 33%, just before prices briefly dipped below pre-attack levels. Money managers are still net long, according to data released Sept. 27 by the U.S. Commodity Futures Trading Commission, but wagers on a rally shrank to below where they were before the Sept. 14 strikes that halted half of Saudi oil output.
“The initial up-swell in long positions in part was a function of worries that the damage to Saudi facilities was going to take long to fix,” said Stewart Glickman, an energy analyst at CFRA Research Inc. “Now it seems like, by all indications, the Saudis, the majority of their processing capacity, is back.”
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