Oil Short-Selling Unwinds in View of Shale Woes, Trade Hopes - Bloomberg:
Hedge-fund managers unwound bets that crude will fall at the fastest pace in 16 months as the prospects for a trade war truce and a slowdown in shale drilling helped futures rebound.
Oil short-sellers slashed their bearish positions on West Texas Intermediate crude by 41% in the week ended Nov. 12, data released Friday show. As they come into the market as buyers to close positions, they are contributing to oil’s 10% rebound since early October.
“We saw a pretty significant amount of short covering this last week,” said Daniel Ghali, a TD Securities commodity strategist. “That’s in line with recent optimism we have seen, much of which was driven by optimism on the trade file, and also a relatively more recent narrative that the shale patch is not going to be able to sustain its output profile.”
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