Chinese financial investors betting on a rebound in oil prices are filling commercial storage tanks held by the Shanghai futures exchange just as fast as the exchange can find them.
FILE PHOTO: Oil and gas tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018. REUTERS/Aly Song
“We call them ‘hermit’ investors,” said a state oil official whose firm recently delivered cargoes into the contract. “They are hedge funds backed by rich individuals, trading affiliates of brokerages.” INE did not respond to a request for comment. The Shanghai Futures Exchange, which owns the INE, declined to comment on storage or buyers, saying: “This involves trade secrets of the participants, and is not public information.”
The speed of investor stockpiling — at 50 million barrels in just over two months, or 700,000-800,000 barrels per day — is faster than in previous buying bouts in 2018 and 2019 led by state firms, said analysts and the first state oil trader.
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