Column: Hedge funds turn ultra-bearish as volume war compounds pandemic - Kemp - Reuters:
Hedge funds continued selling petroleum in anticipation of a sharp downturn in oil consumption, even before major governments announced tougher travel restrictions late last week.
Hedge funds and other money managers sold another 58 million barrels of petroleum futures and options in the six major contracts in the week to March 10, exchange and regulatory data showed.
Total sales since the start of the year have reached 637 million barrels – in two waves, the first lasting roughly from Jan. 7 to Feb. 18 (457 million over six weeks) and the second since Feb. 18 (180 million over three weeks).
By March 10, hedge funds had established one of the most bearish positions in petroleum since oil prices slumped in 2014/15.
Portfolio managers have continued selling despite already-low prices and the existence of stretched short positioning, both of which would normally be a signal to start trimming short positions and rebuilding long ones.
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