• 5 minutes Malaysia's Petronas vs. Sarawak Court Case - Will It End Up In London Courts?
  • 9 minutes Sell out now or hold on?
  • 16 minutes Oil prices going down
  • 22 mins Oil prices going down
  • 11 hours When will oil demand start declining due to EVs?
  • 13 mins Could oil demand collapse rapidly? Yup, sure could.
  • 3 hours Sabotage at Tesla
  • 11 hours Oil and Trade War
  • 10 hours Trump Hits China With Tariffs On $50 Billion Of Goods
  • 11 hours venezuala oil crisis
  • 13 hours Russia and Saudi Arabia to have a chat on oil during FIFA World Cup - report
  • 15 hours Malaysia's Petronas vs. Sarawak Court Case - Will It End Up In London Courts?
  • 13 hours Sell out now or hold on?
  • 11 hours Germany Orders Daimler to Recall 774,000 Diesel Cars in Europe
  • 8 hours What If Canada Had Wind and Not Oilsands?
  • 15 hours Correlation Between Oil Sweet Spots and Real Estate Hot Spots
  • 7 hours The Wonderful U.S. Oil Trade Deficit with Canada
  • 21 hours Trump Renews Attack On OPEC Ahead Of Group's Production Meeting
  • 9 hours After Three Decade Macedonia End Dispute With Greece, new name: the Republic of Northern Macedonia
Alt Text

The Fed Is Driving Down Oil Prices

The hawkish U.S. Federal Reserve…

Alt Text

EV Makers Receive Little Support From Trump

Electric vehicle makers find themselves…

Alt Text

Rig Count Falters Amid Oil Price Correction

The rig count slipped on…

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Trending Discussions

Did Hedge Funds Just Change The Way They Trade Oil?

Trading

Crude oil, unleaded gasoline and natural gas posted mixed results this week as volatility returned to the markets. Crude and gasoline were under pressure, while natural gas was set to move higher. Both moves were surprising because crude and gasoline momentum was trending high before abruptly turning lower and natural gas was pressing multi-month lows before making a miraculous turnaround.

The sell-off in crude oil was particularly interesting because, in my opinion, it represented a change in the trading style of the hedge funds. Having been burned several times this year aggressively playing the long side in the hopes of bullish news, this week, it looked as if hedge funds balked at a chance at buying strength that could’ve sent the market to a multi-month high.

Perhaps it was nervousness over the geopolitical events, or perhaps it was a change in their trading style to book a profit at the first sight of potentially bearish data. Whatever the reason behind the hedge fund selling, it now looks as if they are being more careful and likely to seek value for their next bullish play rather than try to take out resistance.

Crude Oil Analysis

The news was mixed all week, but crude oil buyers were able to overcome some of the bearish data to mount an assault on the early August high. However, surprise news on Thursday appears to be just too much for buyers take.

U.S. West Texas Intermediate posted a potentially bearish closing price reversal…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News