COLUMN-Funds dump oil as fears about coronavirus hit to demand grow: Kemp - Reuters:
Hedge funds were heavy sellers of crude oil and refined products last week as the worsening coronavirus outbreak stoked fears about a China-led slowdown in oil consumption in 2020.
Sunny optimism at the start of the year about an acceleration in the global economy has evaporated, replaced instead by extreme concern that the coronavirus and quarantine measures will hit oil consumption hard.
Travel restrictions within China, the reduction in passenger flights to and from the country, and the slump in freight movements will all severely dent oil demand, especially for middle distillates such as diesel and gasoil.
Hedge funds and other money managers sold petroleum futures and options in the six most important contracts equivalent to 147 million barrels in the week to Jan. 28, according to data from regulators and exchanges.
No comments:
Post a Comment