Money managers are confident oil prices will drop.
They've increased bets that crude prices will fall as seasonal stockpiles reach their highest point in two decades, putting enormous downward pressure on the price of oil, Bloomberg reports. "The rise in supplies will add more downward pressure," Alexander Alternative Capital CIO Michael Corcelli says. "It will be a long time before we can drain the excess."
Hedge funds shortened positions in West Texas Intermediate crude by 38,897 futures during the week ended July 26 and WTI fell 3.9% to $42.92 a barrel. WTI experienced its largest monthly decline during July, falling 14%, and it’s down 19% since early June. [Bloomberg]
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