Algorithm Trades Worsened The Oil Price Slump after OPEC's Decision

The market reaction to OPEC's latest production policy announcement was excessively negative, partly due to many executed trades based on trend-following algorithms, analysts say. While most analysts see the OPEC+ alliance's announcement this weekend as bearish for oil prices toward the end of the year because of the plan to begin unwinding some of the cuts as early as in October – market conditions permitting – the price move in oil early this week was likely overdone, observers and analysts said.   Algorithmic Traders Drag Oil…