The U.S. oil market is about to see a $4.6 billion sell-off

According to Bloomberg on January 5: U.
S.
oil futures are trading above $75, but the restructuring of billions of dollars of commodity investments every year will trigger a round of sell-off
.

Every January, two of the world's largest commodity indices, the S&P GSCI and the Bloomberg Commodity Index, are recalibrated, stimulating massive inflows and outflows
from commodity markets.
For West Texas Intermediate (WTI), this means that investments tracking the two benchmarks may be ready to pull nearly 60 million barrels worth of futures contracts
from the market, according to Societe Generale estimates.

The French bank estimated in November that the dollar value of these flows was very significant, about $4.
6 billion
.
According to a December report, Citigroup expects to sell about $3.
1 billion in shares
.
Each index has a five-day volatility period, with the first period starting on the fifth business day of January, although traders tend to hold positions
early.

Pressure on liquidity will hit U.
S
.
benchmark crude futures contracts as demand recovers and supply from OPEC and its allies remain constrained, helping to deplete inventories at a time when prices remain high.
The price of West Texas Intermediate is now about $10 short of its highest point since October 2014
.

While there is no clear estimate of how much money is tracking BCOM and S&P GSCI, the former said last year that subsequent assets exceeded $100 billion
.
Bloomberg Index Services Limited is the manager of Bloomberg Indices (including BCOM) and is a wholly owned subsidiary
of Bloomberg Limited.

Figures for the total amount of assets under management are important because they determine the value of
the rebalancing to some extent.
If the assets under management are larger, the size of the rebalancing may increase
.

Other important factors that determine the size of capital flows include commodity performance, production levels and overall trading volume
in 2021.