Oil Regains Ground After Sharp Selloff… just to fall all over again.
A rally in oil prices helped steady markets in Europe and Asia on Friday after crude suffered steep declines earlier this week on concerns that major producers are flooding the market with oil, reports the Wall Street Journal. Brent crude,the global oilbenchmark, was up 2.1% at $67.66 a barrel on London’s Intercontinental Exchange, around 4% lower than where it opened the week.
Overall, investors are watching the crisisin the U.K., following several resignations from Prime Minister Theresa May’s government on Thursday. Concerns are growing that the U.K.’s plan to exit the European Union is unraveling.
Once seen as an unlikely outcome, the prospect of the U.K. crashing out of the European Union early next year without an agreement spelling out the terms of its exit is now considered a plausible scenario inside boardrooms.
The Journal’s Jason French and Jovi Juan look at how ano-deal Brexit might affect the U.K.
“We didn’t have many no-deal queries ’til about a month and a half ago,” said Allie Rennison, head of EU and trade policy at the Institute of Directors, a British organization that represents business leaders. With political uncertainty climbing, “people are becoming much more aware of it,” she said.
Britain is slated to leave the EU on March 29. It would represent the first departure of a major economy from a comprehensive free-trade bloc in decades.
Oil Hedge Fund Giant Hammered in Crude’s SlideOne of the last oil bulls standing has become a high-profile victim of the recent rout in crude prices, write Rachael Levy, Georgi Kantchev and Gregory Zuckerman.
Pierre Andurand, who earlier in 2018 predicted oil could soon hit $100 a barrel, suffered the largest-ever monthly loss of his flagship fund in October.
“The weak oil physical market is not only due to more OPEC oil on the water. It is mainly due to China destocking. Their low imports are not sustainable. They have been very low for 3 months. Their imports could go back up 2mbd any time now” (src)
The $1 billion Andurand Commodities Fund lost -20.9% last month, taking the fund down more than -12% for the year, according to numbers sent to investors and reviewed by The Wall Street Journal.
A spokesman for Mr. Andurand declined to comment on the fund’s performance.
Mr. Andurand is one of the most prominent oil traders in a sector littered with casualties, though he has dealt with losses before.
His previous fund closed shop in 2012.
oil investor tweets:
Brexit EU tweets: