U.S. Oil Market Braces for a $4.6 Billion Wave of Selling
- Commodity index rebalancing to spur large WTI outflow
- U.S. futures begin 2022 above $75 a barrel in New York
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U.S. oil futures are trading above $75 but the yearly reshuffling of billions of dollars of commodity investments are about to trigger a sharp bout of selling.
Every January, the world’s two biggest commodities indexes -- the S&P GSCI Index and the Bloomberg Commodities Index -- reset, spurring a raft of inflows and outflows across commodity markets. For WTI, that means investments tracking both benchmarks could be ready to pull almost 60 million barrels worth of futures contracts from the market, according to Societe Generale estimates.