Crude declined to a 12-year low, confirming the view of hedge funds that turned the least bullish since 2010.
Futures dropped 5.3 percent in New York, adding to last week’s 10 percent slide. Speculators’ net-long position in West Texas Intermediate crude shrank 24 percent in the week ended Jan. 5, U.S. Commodity Futures Trading Commission data show. Producer prices in China fell for a record 46th month, bolstering concern about the world’s second-biggest economy. A rapid U.S. dollar gain may send Brent oil to as low as $20 a barrel, Morgan Stanley said.