On the surface, the oil market is getting worse and worse: there are now more bearish bets on benchmark Brent crude than at any time in at least six years. Oil’s ripe for a so-called “short-covering” rally—where traders who sold contracts hoping to benefit from falling prices buy them back to take profits or avoid losses. “The market is vulnerable to a very violent short-covering move,” said Thibaut Remoundos, founder of Commodities Trading Corporation Ltd, which advises on hedging strategies. The Hang Seng Index fell 0.6% to 25,683.50 points, while the China Enterprises Index lost 0.9% to 10,408.19 points. The start-up board lost nearly 1% on Wednesday, having tumbled nearly 10% on Tuesday to close at a record low.

Source: Mint June 28, 2017 18:56 UTC