| The enormous concentration of bearish short positions in U.S. crude oil futures and options contracts by hedge funds and other money managers left the market ripe for a short-covering rally.
The rebound in futures prices, with the September WTI contract up by 10 percent since Aug 2, has all the characteristics of a short-covering rally. Price moves in the next few trading sessions should give some indication about whether hedge funds have embarked on the liquidation phase of the shorting cycle or are extending their short positions even further...............................................Full Article: Source
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