HomeIndustriesOil Selloffs Surge Amid Price Decline

Oil Selloffs Surge Amid Price Decline

Oil investors have been abandoning the market in waves following the latest market crash, with 19% of money managers dumping their oil holdings to record the largest dropoff in six weeks.

The dropoff comes after West Texas Intermediate prices fell for a third consecutive week, hitting $71.34 per barrel, previously briefly falling to their lowest level since late 2021 at $63.64 per barrel. Data from the U.S. Commodity Futures Trading Commission showed that WTI contracts dropped to 157,047 contracts in the week ended May 2.

For large periods oil speculators have been burned by their decision to keep backing bullish oil sentiment positions. In early April, speculators who were backing a decline in prices were blindsided by a surprise decision by OPEC+ to cut its daily oil output, thereby raising prices. In an effort to avoid further surprises, oil speculators have decided to remain on the sidelines.

Carley Garner, a Commodity Broker and Strategist at DeCarley Trading believes that the struggling oil market has the potential to be detrimental to other markets as well.

“We’re not there yet, but if oil drops below $63, it will cascade in other markets — even stocks,” Garner claimed. “Oil lures speculators when prices move higher. They need to see a more rational market.”

U.S. Futures Mixed as Investors Observe Labor Data

Futures on the New York Stock Exchange were mixed on Thursday as investors analyzed labor data to gauge the potential path forward for interest...

JetBlue Stock Jumps Following Adjusted Forecast

JetBlue Airways shares jumped by 7% in premarket trading on Thursday after the U.S. airline narrowed its annual adjusted loss forecast. With a previous...

Toyota to Sell Entire Stake in Harmonic Drive Systems

Harmonic Drive Systems, a Japanese maker of speed reducers, confirmed that Toyota Motors is set to sell its entire share in the company. Following...