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Funds' oil bet slides down a slippery slope

A wager on the gap between Brent and West Texas Intermediate is upended

A wrong-way bet on global oil prices has hit some of the crude market's most high-profile investment firms, including hedge funds run by former Goldman Sachs traders, worsening what has been a dismal year for commodity-fund returns.

Wagers that the gap between Brent and West Texas Intermediate crude-oil prices would narrow were upended when the "spread" between these two prices instead diverged during September and October.

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