In a market environment in which the majority of day-to-day traders are retired, moved on, or fired within a decade or less, the reaction to events of a type that have not been seen in that timescale tend to be overdone. This suits the more seasoned traders who decided not to retire but to trade on their own account or for hedge funds because they can let these less-experienced traders skew the price before stepping in and scooping up big profits from corrections based on reality. Indeed, a realistic examination of the actual figures involved in the current coronavirus (2019-nCoV) outbreak that began in China’s Wuhan province reveals that the true impact on the Chinese economy – the key bulwark of support for the oil price – is likely to be minimal. In fact, while there are many reasons to be short oil but the coronavirus is not one […]