Heard last night index funds have liquidated the equivalent of maybe 140 million barrels of crude.
Add to that trend followers who went from long to short, and it’s way more than enough to explain the sell-off.
Since the Saudis don’t want to make their price setting status obvious, they ‘get out of the way’ for these type of liquidations, and if they want prices back up, as I suspect they do, they start bringing them up after the smoke clears.
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