Investor Optimism on Global Oil Price Wanes as Demand Woes Loom - Bloomberg

Investor Optimism on Global Oil Price Wanes as Demand Woes Loom - Bloomberg:

Over the past four months, investor optimism that global crude prices will rise has slumped by almost half.

Hedge funds’ net-bullish position on Brent crude, a measure of how positive money managers are that prices will gain, has plunged 49 percent since early April as trade wars cloud the picture for oil consumption. Despite a good week for the benchmark amid strikes at North Sea fields and declines in U.S. stockpiles, Brent remains about 6 percent down from this year’s peak in May.

“When you start to look at the different economies across the globe -- Europe, Asia, the emerging markets are definitely starting to hit some headwinds,” said Mark Watkins, who helps oversee $151 billion at U.S. Bank Wealth Management. Investors “are potentially getting a little bit more concerned about the rest of 2018, and probably going into 2019, that demand might be a little bit softer than previously had been.”