Hedge funds trim short oil positions as prices hit crisis point: Kemp - Reuters

Hedge funds trim short oil positions as prices hit crisis point: Kemp - Reuters:

Hedge funds began trimming short positions in petroleum last week as crude oil prices fell to crisis levels for some producers and refiners and traders started to anticipate shutdowns at oilfields and refineries.

Extreme high and low prices are usually fleeting because they are dynamically unstable and contain the seeds of their own destruction, forcing large and accelerated adjustments from consumers and producers.

U.S. crude and distillate prices have been hit harder than Brent or gasoline, so fund managers seem to be anticipating they have the most potential for a short-term reversal.

Hedge funds and other money managers were net sellers of just 8 million barrels in the six major petroleum futures and options contracts in the week ending March 24.