Oil’s Rout Shows China Demand Hope No Match for Macro Collapse
- Brent crude and WTI tumbled to a 15-month low on Wednesday
- Bearish options flows exacerbated the bank-induced selloff
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This year the oil market has seen a tussle between those believing China’s demand will surge and others worried about an economic slump in Europe and the US. On Wednesday, the bears won.
Oil tumbled to a 15-month low amid a banking crisis that’s expanded to Credit Suisse Group AG and rippled through markets after trading in a relatively narrow range, but the warning signs have been building for much longer.