The four-day drop pushing oil to less than $50 a barrel and energy stocks in the S&P 500 Index to the lowest since early November has done nothing to encourage short sellers. Bearish bets on the Energy Select Sector SPDR Fund, the biggest exchange-traded fund focused on the industry, have dropped to the lowest level since its 1998 inception this week. Shares in the $16.8 billion fund have slumped 11 percent from their post-election peak on Dec. 13.
Oil market volatility rose to the highest level since January as swelling U.S. inventories sparked concern about the effectiveness of production cuts by OPEC and its partners. The CBOE Crude Oil Volatility Index is heading for the biggest two-day gain since December 2014. West Texas Intermediate for April delivery dropped as much as 3 percent to $48.79 a barrel on Thursday, the lowest since Nov. 30.
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