More Volatility Ahead For Oil As Record Fund Positions Are Unwound

The price of oil could have further to fall as hedge funds, and investors re-position following a record buildup in net long oil futures according to a report from JP Morgan’s Nikolaos Panigirtzoglou published at the end of last week. The report warns of “commodity downside” due to persistent near-record net long futures positioning as “a pending normalization/mean reversion of spec positions in commodity futures has begun.” More Volatility Ahead For Oil As Funds Unwind As I reported the end of last week, even though hedge funds and money managers cut their combined net-long position in the three month Brent…