SUMMARY

• Money managers ditch net-bullish oil holdings by 19%, hitting a decade low
• Investors' exodus leaves markets to algorithm and momentum-based traders, increasing volatility
• Bulls may return if Russian output slows and Chinese demand recovers

Chill vibes and gnarly tumbles, money managers just bailed on their net-bullish oil holdings by a whopping 19% - the most massive drop in six weeks, dude! We're talking the lowest seasonal level in over a decade.

Why the great escape? Well, my friends, oil's taken another gnarly nosedive, with West Texas Intermediate futures wiping out for three weeks straight. The dip's even hit the lowest point since late 2021. Ouch!

But what's the deal with all these investors hitting the eject button? It's drying up liquidity, leaving the markets to those radical algo or momentum-based traders. This sitch often brings even more turbulence, according to our main man, Michael Tran from RBC Capital Markets LLC.

Speculators have been burned one too many times, so they're chilling on the sidelines. But we might see the bulls come back to play if Russian output slows down and Chinese demand picks up.

When the oil market suffers, it can drag other commodities down too. Carley Garner, a Commodity Broker and Strategist at DeCarley Trading, warns if oil dips below $63, it'll create a domino effect. Let's hope for a more rational market, bro!

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