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Crude Oil Tumbles to 12-Year Low as Hedge Funds Head for Exit

  • Speculators cut net-long positions 24% in week to Jan. 5: CFTC
  • Morgan Stanley says stronger dollar may drag Brent down to $20
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Crude Oil Hits New Lows, What's Next?

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Crude declined to a 12-year low, confirming the view of hedge funds that turned the least bullish since 2010.

Futures dropped 5.3 percent in New York, adding to last week’s 10 percent slide. Speculators’ net-long position in West Texas Intermediate crude shrank 24 percent in the week ended Jan. 5, U.S. Commodity Futures Trading Commission data show. Producer prices in China fell for a record 46th month, bolstering concern about the world’s second-biggest economy. A rapid U.S. dollar gain may send Brent oil to as low as $20 a barrel, Morgan Stanley said.