Crude oil sees new short sales as interest rates rise

London, Oct. 31 (BNA): Portfolio investors resumed selling petroleum last week as production were replaced by concerns about rising interest rates and the impact on the global economy and oil consumption.

 

Hedge funds and other money managers sold the equivalent of 14 million barrels in the six most important petroleum futures and options contracts over the seven days ending on October 24, Reuters reported.

 

Funds were net sellers for the fourth time in five weeks, with sales totaling 201 million barrels since Sept. 19, according to records filed with ICE Futures Europe and the U.S. Commodity Futures Trading Commission.

 

The most recent week saw sales of Brent (11 million barrels), NYMEX and ICE WTI (4 million), and U.S. diesel (4 million), only partially offset by purchases of U.S. gasoline (3 million) and European gas oil (1 million).

 

 

JA