July was a horrible month for crude prices, with WTI falling more than -14% to price levels not seen since last year. As is often the case, the positioning of hedge funds towards crude has also accelerated simultaneously, with bearish futures positions rising sharply and bullish futures positions shrinking. Some analysts seem to think that this recent turn of events could actually be a contrarian indicator.
https://www.reuters.com/article/us-oil-global-kemp/hedge-funds-turn-ultra-bearish-on-crude-and-gasoline-kemp-idUSKCN10D03I
https://www.reuters.com/article/us-oil-global-kemp/hedge-funds-turn-ultra-bearish-on-crude-and-gasoline-kemp-idUSKCN10D03I
