Hedge funds have significantly reduced their bullish positions on Brent crude, marking the largest cut in almost two years. This shift comes amid an algorithmic selloff and growing concerns about demand. Oil traders relying on trend-following algorithms have turned bearish rapidly over the past week, with the bulk of their selling already completed. Commodity trading advisers have also become bearish on crude, selling off oil futures in recent weeks. Managed money positions in petroleum futures are set up for a bear market, and a bit of stock market mean reversion may be a deciding factor.