Oil Short-Selling Surges as Global Demand Outlook Deteriorates - Bloomberg

Oil Short-Selling Surges as Global Demand Outlook Deteriorates - Bloomberg:

Oil skeptics are gaining ground fast as the outlook for global demand worsens.

Hedge funds boosted their bets that West Texas Intermediate crude will fall by 46%, the most since August, according to U.S. Commodity Futures Trading Commission data for the week ended June 11. The balance between bullish and bearish wagers was the most pessimistic since February.

“Outside the United States it’s unmistakable world growth is slowing down,” said Bill O’Grady, chief market strategist at Confluence Investment Management LLC in St. Louis. “The more trade tensions arise, the greater the likelihood that growth is slow, and if Chinese growth slows, it’s not good for oil."