Algorithmic Traders Add to Oil’s Rout as Demand Fears Resurface
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Algorithm-driven oil traders turned increasingly bearish on Tuesday, adding to a rout that erased the commodity’s gains for the year and threatened to push US crude below $70 a barrel.
Global benchmark Brent plunged as much as 4.7% to the lowest intraday price since mid-December 2023 amid worries about demand in the US and China. A significant supply outage in Libya helped stall oil bears, but a potential deal to restore the nation’s production and the possibility OPEC+ will increase output next month have inflamed negative sentiment.