Tuesday 11 December 2018

RPT-COLUMN-Oil traders focus on deteriorating economic outlook rather than OPEC: Kemp | Reuters

RPT-COLUMN-Oil traders focus on deteriorating economic outlook rather than OPEC: Kemp | Reuters:

The weakening outlook for oil consumption coupled with rising output from U.S. shale and softer than expected U.S. sanctions on Iran have convinced most traders the market is moving into a period of oversupply.

In the run up to last week’s OPEC meeting in Vienna, hedge fund managers had little confidence in the organisation’s ability to cut production by enough to avoid an oversupplied market next year.

Fund managers sold another 32 million barrels of Brent futures and options in the week to Dec. 4, bringing total sales over the last 10 weeks to a record 360 million barrels.

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