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Hedge funds bet big against oil ahead of Iran deal — short the crude crash

Large institutional investors are betting heavily against oil prices, anticipating that a new peace deal between the US and Iran will flood the market with more supply.

Idea

If the US and Iran finalize a peace agreement, Iranian oil will flow back into the global market much more easily. More supply means lower prices. The fact that professional hedge funds are aggressively betting on this outcome suggests they see the writing on the wall, making the downside momentum in oil a high-probability trade.

Key details

SCOUSO1D#macro#commodities#geopolitics#momentum

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