Short sellers heavily bet on a crash in crude oil, most facing severe setbacks

MeNews · 2026-04-09T11:33:40+00:00

A group of crude oil traders heavily shorted, betting on falling oil prices, resulting in most incurring losses. ETF investors poured a record $977 million into SCO, but the fund still declined 41% in March. Meanwhile, long-position funds also set records, and the market showed significant divergence.

MeNews

2026-04-09 11:33:40

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ME News, April 2 (UTC+8): A group of crude oil traders massively went short, betting that oil prices would retreat from war-driven highs, but most traders have been dealt a severe blow so far. Data shows that in March, ETF investors poured $977 million into the ProShares UltraShort Bloomberg Crude Oil ETF (SCO), setting a record for the largest monthly inflow since the fund was established in 2008. SCO delivers twice the inverse return of daily crude oil price movements. Despite record inflows, SCO’s total assets still stand at only $970 million, lower than the fund’s total monthly inflows.

Asym 500 founder Rocky Fishman said: “This is a bet on the idea that ‘the war will end soon.’” After President Trump hinted again that the Iran war might end, the fund rose 8%, but it still fell 41% in March, marking its worst performance in nearly six years. However, short bets are only half the market picture—long funds have also set records. The US Oil Fund (USO) attracted about $700 million in March, the largest monthly inflow since the pandemic, and the US Brent Oil Fund (BNO) pulled in $600 million, reaching an all-time high. The market is highly polarized, with leveraged funds hedging bets on both sides. (Jin10) (Source: ODAILY)

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