Oil Enthusiasts Stay Out of Rally Led by Shrinking Bearish Bets
- Bearish bets decreased 67% in seven weeks as crude rebounded
- Short liquidation biggest on record, according to CFTC data
Oil Enthusiasts Haven't Been Jumping On Board the Rally
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Oil enthusiasts haven’t been jumping on board the latest rally.
As crude has soared more than 50 percent since Feb. 11, the number of bets on increased prices has barely budged. Instead, the upward pressure on prices appears to have come from traders cashing out of bearish wagers at an unprecedented pace. The liquidation of short positions during the last seven weeks covered by data from the U.S. Commodity Futures Trading Commission was the largest on record.