February 20, 2013
Crude oil futures fell sharply on Wednesday, joining in a sell off hitting precious metals and copper, as selling accelerated amid market talk that a hedge fund was forced to liquidate substantial positions in commodities.
Oil entered into a steep decline just before 11 a.m. EST, diving more than $2 per barrel over 20 minutes with several volumes spikes. Several traders cited rumors that a hedge fund had been forced to sell out of positions across several commodities.
Exiting of long positions built up during the recent rally and the triggering of sell-stop orders accelerated the slide as the U.S. March crude contract approached expiration at the end of the day’s session, brokers and traders said.