As international oil prices continue to turmoil, traders began to close their positions and leave the market.
Oil prices have fluctuated sharply recently, with Brent crude oil futures changing for 15 consecutive trading days exceeding $5 or more - the volatility exceeding the 2008 financial crisis and the early stages of the 2020 COVID-19 epidemic.
Black Gold Investors Senior Oil Analyst Gary Ross believes: "Given the market's volatility, the market cannot trade at present." "The volatility is so great that it forces everyone to cut the size of the position and forces the liquidation. The intensification of volatility of
also leads to an increase in margin requirements from brokers and clearing agencies, and makes the maintenance costs of futures and options positions increasingly high, further encouraging fund managers to cut positions. The continuous large-scale closing of
has caused the total open position of Brent crude oil to fall below 2 million for the first time since 2015. ICE European Futures Company's bet on price increases sharply, with the largest decline since 2011.
Intercontinental Exchange ICE data shows In the week ended March 8, hedge fund and other fund managers sold 142 million barrels of oil in the six most important oil-related futures and options contracts.
sell-off was mainly to close the existing bullish long positions to 114 million barrels, rather than opening new bearish short positions, which is consistent with a risk reduction strategy.
As negotiations between Russia and Ukraine and a new round of epidemic in Asia broke out, traders' departure continued. Many hedge fund managers have decided that before the risk balance becomes clearer, it is prudent to cash in on the profits of the previous bullish positions and reduce risk exposure.
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