Short-Sellers Give Oil a Break Following Coronavirus Concerns - Bloomberg:
Short-sellers are giving oil a reprieve after the global coronavirus scare led them to double bearish wagers in just two weeks.
With the market less panicky, hedge funds kept their bets against West Texas Intermediate crude little changed in the week ended Feb. 11, data released Friday showed. But their overall stance is still the most pessimistic since November.
“There is a chance that it gets worse from here,” said Stewart Glickman, an analyst at CFRA Research. "Oil prices could go further into a tailspin.”
Oil prices in New York sank below $50 a barrel for the first time in a year this month, after reaching more than $65 in early January. They’ve rebounded somewhat to around $52 after China reassured the international community that a huge spike in new illnesses was a one-off event. The outlook for oil demand remains gloomy, though.
Short-sellers are giving oil a reprieve after the global coronavirus scare led them to double bearish wagers in just two weeks.
With the market less panicky, hedge funds kept their bets against West Texas Intermediate crude little changed in the week ended Feb. 11, data released Friday showed. But their overall stance is still the most pessimistic since November.
“There is a chance that it gets worse from here,” said Stewart Glickman, an analyst at CFRA Research. "Oil prices could go further into a tailspin.”
Oil prices in New York sank below $50 a barrel for the first time in a year this month, after reaching more than $65 in early January. They’ve rebounded somewhat to around $52 after China reassured the international community that a huge spike in new illnesses was a one-off event. The outlook for oil demand remains gloomy, though.
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