SEE MORE: 4 Energy ETFs may be at Near-Term Tops
Still, some concerned oil market participants believe oil is rallying without strong fundamental cause. A case can be made that oil’s rally is defying still troubling supply dynamics and tepid demand.
“Gross short positions among speculators in U.S. crude fell by a massive 66,247 contracts to 96,985, the lowest in two months, in a sign that much of the rally over the last few days have been driven by short covering,” reports Reuters.
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United States Oil Fund