Yes, the Mr. Obvious award goes to Bloomberg News for discovering that $40 oil is a sign of increased pessimism in the US (and global) economies.
(Bloomberg) Hedge funds have turned more pessimistic on oil as prices flirted with $40 a barrel for the first time since August.
‘The speculators keep trying to pick the bottom and keep getting burned,’ Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by phone.
Money managers’ short bets in West Texas Intermediate crude surged 21 percent in the week ended Nov. 10, according to data from the Commodity Futures Trading Commission. The net-long position dropped 16 percent. The release of the figures was delayed because of Veterans Day on Nov. 11.
West Texas Intermediate Crude Oil prices started to decline in a serious way in July 2014 as the US Dollar began its acceleration.
This post was published at Wall Street Examiner by Anthony B. Sanders ‘ November 18, 2015.
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