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Good news can't stop oil market's bad mood as short-sellers rule

Futures shake off report of declining US stockpiles to finish last week 3.9% lower 

Adding to the gloom, Saudi output increased in June by the most in almost a year, according to a Bloomberg survey. In the US, shale drillers keep adding rigs, and production has risen for most of the year. Worries about a global supply glut have kept futures below US$50 a barrel for the past six weeks.

New York

EVEN good news can do little to dispel the prevailing pessimism in the oil market.

Hedge funds paused a swift increase last month in wagers on declining West Texas Intermediate (WTI) crude prices. But there was little conviction behind a price rise, as futures shook off a...