Oil Short Squeeze Burns Bears as SCO Posts Record Monthly Inflows

ME News reported that on April 2 (UTC+8), a wave of crude traders leaned aggressively short, wagering prices would pull back from war-driven highs. Many of those positions have since moved sharply against them. Fund-flow data show ETF investors put $977 million into the ProShares UltraShort Bloomberg Crude Oil ETF (SCO) in March, the biggest monthly inflow since the product launched in 2008. SCO targets two times the inverse of crude's daily move. Even after the surge, the fund's total assets stand at $970 million, below the amount invested during the month. Rocky Fishman, founder of Asym 500, said the positioning reflects a view that "the war will end soon." After President Trump again hinted at a possible end to the Iran conflict, the fund gained 8%, yet it still sank 41% in March, its worst monthly showing in nearly six years. Bearish flows were only part of the story. Bullish oil funds also saw record demand. The United States Oil Fund (USO) drew about $700 million in March, its largest monthly inflow since the pandemic. The United States Brent Oil Fund (BNO) attracted $600 million, the biggest monthly inflow in its history. The market remains sharply split, with leveraged money placing hedged bets on both sides. (Jinshi) (Source: ODAILY)