Managed money turns more bearish on oil: CFTC (by Claudia Assis)
SAN FRANCISCO (MarketWatch) -- Money managers turned bearish on oil futures just a few days before oil posted its best day since May, Friday data from the Commodity Futures Trading Commission's commitment of traders showed. Managed money dropped 33,200 "long" contracts, or bets prices will go higher, and added about 5,300 "short" contracts to their portfolios, or bets prices will go lower, for the week ended Jan.25. "The reduction ... does make the market somewhat less overbought and creates some space for a fresh mini-cycle or buying," but the higher risk still is "long" liquidation, said Tim Evans, an analyst with Citigroup's Citi Futures Perspective. Crude ended 4.3% higher on Friday at $89.34 a barrel, rallying as clashes in Egypt ignited fears of contagion to key oil-producing countries in the Middle East.