Has Oil Bottomed?

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There has been a dramatic switch over the year from short energy positions, particularly oil, to long positions.

Once again, precious metals were in 2008 the only commodities with a negative correlation to equities; while investors are swinging from short oil positions to long.. .

There has been a dramatic switch over the year from short energy positions, particularly oil, to long positions. In early April - July the short crude oil ETFS saw inflows of almost $300 million, but as oil has fallen below $40 the short ETFS has been sold and approximately $200 million has gone into long energy ETCs, especially crude oil. Although the price has not yet responded to the latest production rate cut, sentiment among investors is, by the look of it, on the turn. Next week's Commitment of Traders figures from the CFTC may well make interesting reading.

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