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May 31, 2017

Short Squeeze Tomorrow in The Oil Market (Video)

By EconMatters

We discuss the Oil Market in this market video, there may be too much pessimism in the oil market right now. Everyone seems to be very bearish right now, and I am not sure people understand the seasonality aspect of the Oil Market. This is not the best time to be shorting the oil market at sub 50 going into the strongest part of the demand season. We could very easily bust up to $60 a barrel on some very large inventory draws of the next couple of months of the Drawing Season. If Saudi Arabia and OPEC do concentrate on not exporting oil to the US Market to try and bring down inventories, we could have some really supersized weekly drawdowns well over 12 Million Barrels. I am not sure all the tourists in the market who all the sudden think they are expert oil analysts are prepared for the possibility of a substantial short squeeze that takes oil a lot higher than they ever thought was possible. We could very easily move up to $62.50 a barrel over the next couple of months, and still be in a bear market with longer term fundamental headwinds to overcome. I think there may be too much dumb money shorting oil right now, setting the market up for one of those nasty short squeezes that rips 2 and 3 dollars higher at the end of a day`s long uptrend.

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Item Reviewed: Short Squeeze Tomorrow in The Oil Market (Video) Rating: 5 Reviewed By: EconMatters