Jun. 27 at 9:30 PM
$VG 2 facts on Oil Price:
1-China reduced imports 4.4M barrels a day last month not the demand. This happened after Trump’s visit. May be something to do with Taiwan? The week after US suspended arm sales to Taiwan.
2-in the paper market, managed money 19B short in contracts normal number would be 2-5B. Massive increase
$USO 93% short atm. This is GS level short. How long will they be able to keep that short?
How did they get maximum of maximum bearish in this environment?
Just the attacks in Russia would take the price 100+ a barrel so plus the SoH conflicts 100s of ships strangled. Question is how long can they keep it like that? How deep is their pocket? And the whole play is based on nobody would bet against them.
Demand is not down. Price is not high enough to kill demand but supply missing 8 9 barrels a day. The super glut scenario is not working SoH is still a major conflict zone despite the MoU.