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Oil Futures Selloff Overdone: Barclays

OIL

The current selloff in crude oil futures is overdone, as prices fell too far too quickly, Barclays analyst Amarpreet Singh said in a note, cited by Bloomberg.

  • The selloff is overdone for three reasons:
  • US implied demand numbers are noisy and the latest weekly figures show a disproportionate weakening, Barclays said. The revision of weekly figures with the later published monthly estimates show consistently an upward revision.
  • The move in timespreads does not imply a sudden weakening in demand.
  • Chinese data suggest demand is holding up better than expected.

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