By Rita Devlin Marier
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 its unmistakable world growth is slowing down,” said Bill OGrady, 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, its not good for oil."
Crude has entered into bear market territory this month, dropping more than 20% from an April peak as tensions escalate between the U.S. and China, the worlds two largest energy consumers.
Meanwhile, U.S. crude storage tanks are at their fullest in almost two years, and the International Energy Agency said global supplies will swamp demand next year, further pressuring OPEC.
Tension in the Middle East gave prices some support, but not enoRead More – Source