Why Oil Traders Are Wary Of Buying Crude

The past couple of weeks have seen some good news for oil prices: China is relaxing its zero-Covid rules, the G7 and the European Union launched their price cap and embargo against Russia, and OPEC+ once again undershot its production target by a hefty 2 million bpd. Yet none of this has been enough to stimulate institutional traders to start buying oil. On the contrary, large traders continue to be net sellers, according to Reuters’ John Kemp who follows trading balances in the six most traded crude and fuel contracts on a weekly basis.…