Hedge Funds' net long position in WTI Crude collapsed 27% (the biggest single ‘dump' in over 3 years) ahead of the big plunge last week (and is now down almost 60% in the last month – the most since 2010). Part of a broader deflationary collapse in commodities, as Bloomberg reports, long positions dropped to a two-year low while short holdings climbed 25%, erasing more than $100 billion in market value from the 61 companies in the Bloomberg E&P stock index. With crude supplies still almost 100 million barrels above the five-year average, “there's a lot more room for prices to slide,” warned one trader, “it's going to take a long time for this to work itself out.”
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