Oil Short-Sellers’ Gloom Deepens With Price Stuck Below $55 - Bloomberg:
Hedge funds are increasingly pessimistic on oil as U.S. stockpiles surge and crude refining plunges.
Bets on a West Texas Intermediate crude rout rose 7.6% in the week ended Oct. 15 and have almost tripled since mid-September, data released Friday show. A report showing American crude storage rose for a fifth week while refiners cut processing rates to the lowest since 2017 only reinforced bearish expectations.
“The perception of falling demand is driving prices lower,” said Bob Iaccino, market strategist at Chicago-based Path Trading Partners. “No one thinks that demand is going to get higher.”
Hedge funds are increasingly pessimistic on oil as U.S. stockpiles surge and crude refining plunges.
Bets on a West Texas Intermediate crude rout rose 7.6% in the week ended Oct. 15 and have almost tripled since mid-September, data released Friday show. A report showing American crude storage rose for a fifth week while refiners cut processing rates to the lowest since 2017 only reinforced bearish expectations.
“The perception of falling demand is driving prices lower,” said Bob Iaccino, market strategist at Chicago-based Path Trading Partners. “No one thinks that demand is going to get higher.”
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