Monday 4 May 2020

Oil, Energy News: Oil Falls After Three-Day Rebound as Funds Shun Short-Term Crude - Bloomberg

Oil, Energy News: Latest Updates for May 4, 2020 - Bloomberg:

Oil fell after a three-day rebound as a number of funds shifted away from near-term contracts, fearing a repeat of the meltdown last month that saw prices plunge below zero.

Futures fell 8% toward $18 a barrel in New York as investors worried that a massive supply overhang while the coronavirus shatters demand will send the market tumbling again.

The manager of a $500 million oil exchange-traded fund in Hong Kong said its broker refused to let it increase holdings of crude futures. S&P Global Inc., which is behind the most closely followed commodity index, said it will roll West Texas Intermediate futures for July into August, while the United States Oil Fund LP said it will halve holdings in the July contract.

Last week, crude rallied almost 50% in three days on early signs of improving consumption and the start of output curbs from OPEC+ and other producers.

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