With crude oil prices hovering near $30 per barrel, investors have jumped in to oil-related exchange traded funds, betting that the markets have been oversold.
Money managers have increased wagers on crude oil prices, reports Mark Shenk for Bloomberg.
According to the U.S. Commodity Futures Trading Commission, total bets on crude oil surged to the highest since it began tracking data in 2006. The combined short and long positions in West Texas Intermediate crude rose to 497,280 futures and options contracts int he week ended February 2.
WTI crude oil futures were down 3.1% to $29.9 per barrel Monday. [Oil ETFs Still Looking to Put in Bottoms]
“This is a reflection of a lot of conviction on both sides,” John Kilduff, a partner at Again Capital LLC, told Bloomberg. “We’re seeing a battle royal between those who think a bottom has been put in and those who think we have lower to go.”