Hedgies drive oil bear to new lows

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:

It is my key trigger for a share market correction as well as junk debt slides with US shalers.

David Llewellyn-Smith

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.

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