Commodities
Oil Algorithmic Traders Amplify Crude Price Rout After OPEC’s Surprise
- Commodity trading advisers flip to net short Brent positions
- Investor group has grown into formidable presence in markets
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Oil traders that rely on trend-following algorithms compounded a selloff in crude this week as OPEC+ unexpectedly signaled plans to return some supplies to the market later in the year.
Brent crude plunged below $80 a barrel on Monday and pierced through other key technical levels, prompting several trend-following commodity-trading advisers to sell oil. The group has flipped to a net short position in Brent, compared with a net long position at the end of last week, according to data from Bridgeton Research Group.