Oil Traders Face Losses Amid War-Driven Price Fluctuations

A group of oil traders has heavily shorted the market, betting on a decline in oil prices from their war-driven highs, but most have faced significant losses. According to Odaily, data shows that in March, ETF investors poured $977 million into the ProShares UltraShort Bloomberg Crude Oil ETF (SCO), marking the largest monthly inflow since the fund's inception in 2008. SCO offers twice the inverse daily return of oil price changes. Despite the record inflow, SCO's total assets remain at $970 million, below the total monthly inflow. Rocky Fishman, founder of Asym 500, stated, "This is a bet on 'the war ending soon.'" Following U.S. President Donald Trump's suggestion of a potential end to the Iran war, the fund rose by 8%, yet it still fell by 41% in March, marking its worst performance in nearly six years. However, short positions represent only half of the market picture, as long funds also set records. The United States Oil Fund (USO) attracted approximately $700 million in March, the largest monthly inflow since the pandemic began, while the United States Brent Oil Fund (BNO) drew $600 million, reaching an all-time high. The market remains highly divided, with leveraged funds hedging bets on both sides.