Hedgies drive oil bear to new lows

David Llewellyn-Smith

Tuesday 15 October 2019

Via John Kemp comes weekly charts of hedge fund oil positioning which is definitely getting short:

But has scope to get materially shorter yet:

I still fear a Q4 price crash for oil as falling seasonal demand and wider global growth weakening combine to deliver another period of glut:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.