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Oil Bears Exit Market Too Soon as Prices Slide to Another Low

  • Speculators cut short positions 8.4% in week to Dec. 15: CFTC
  • U.S. benchmark crude drops to the lowest since February 2009
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Oil Producers Face Crude Change of Economics

Updated on

Speculators betting oil would rebound from a six-year low got it wrong as the market rout resumed.

Oil rose on Dec. 15 on reports that the U.S. was about to lift the 40-year ban on crude exports and on forecasts that government data would show a decline in America’s crude inventories. Prices dropped the next day on the realization that there was little overseas demand for the crude and after U.S. supplies climbed to the highest level for this time of year since 1930.