Monday 6 December 2021

Column: Oil market hit by wave of hedge fund liquidation: Kemp | Reuters

Column: Oil market hit by wave of hedge fund liquidation: Kemp | Reuters

Fears over the Omicron coronavirus variant's impact on international aviation and other sources of oil demand have prompted massive liquidation of previously bullish hedge fund positions.

Hedge funds and other money managers sold the equivalent of 131 million barrels in the six most important petroleum futures and options contracts in the week to Nov. 30 (https://tmsnrt.rs/31wlm1Q).

The one-week sale was the 13th largest in 455 weeks since the start of 2013 and was a result of Omicron fears converging with low levels of liquidity after the Thanksgiving holiday in the United States.

Total sales since the start of October have reached 293 million barrels, according to position records published by ICE Futures Europe and the U.S. Commodity Futures Trading Commission.

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