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Oil prices end the week down as demand s rebound gets patchy
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Historic Oil Price Crash Marks One Year Anniversary at $63 a Barrel – gCaptain
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By Andres Guerra Luz and Isis Almeida (Bloomberg)
Net bullish wagers on rising commodity prices fell to the lowest since December last week, raising questions about the commodity supercycle.
Money managers are trimming what had been the largest wager for rising commodity prices in at least a decade as stumbling economic reopening efforts force a reconsideration of the popular recovery trade. A recent bond rout raised worries over inflation and surging bulk shipping rates are seen capping any further upswing.
There’s a sense that “we have yet to get rid of the coronavirus, with rising cases and extended lockdowns delaying the expected growth sprint,” said Ole Hansen, head of commodities research at Saxo Bank. “The surge in Treasury yields, a stronger dollar and worries that China may tighten liquidity in order to curb inflation are also contributing factors.”
Oil closes lower, despite mounting evidence of underlying market strength By Andres Guerra Luz on 4/8/2021
(Bloomberg) Oil closed lower Thursday, yet its underlying market structure firmed, as investors assessed the challenges to a global economic recovery.
West Texas Intermediate crude futures slipped 0.3% on Thursday after a choppy session. Despite fluctuations in headline prices, the oil futures curve is showing strength. The premium on the nearest global benchmark Brent contract rose to the highest in a week against the following month. The bullish backwardation structure indicates tightening supplies. WTIâs so-called prompt spread also strengthened.
Yet, signs of a mixed economic recovery pressured benchmark crude. In the U.S., where a rebound in consumption is occurring amid a widespread vaccine rollout, jobless claims unexpectedly rose, highlighting the choppy road ahead. Meanwhile, India, the worldâs third-biggest oil importer,
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