“U-Turn Ok”: Oil Bulls’ Feet Get Colder For 5th Straight Week

Assuming you haven’t been living the life of a hermit for the past five or so weeks, you know that some folks got it wrong in terms of positioning in crude.

Going into the rather harrowing collapse in oil prices that unfolded ~three weeks ago, the net spec long in oil looked like this:

Long

And then oil did this:

OilCollapse

Oops. Turns out there’s only so much market participants can take when it comes to vacuous promises about a market balancing being “just around the corner” only to watch as record US production and ever higher stockpiles take their psychological toll on the bull thesis.

Well, three weeks, one pointless meeting in Kuwait, and a whole bunch of headlines saying the exact same thing later, and oil longs have trimmed their bullish bets for five consecutive weeks. Specifically, specs pared 20K contracts and as you can see from the following chart, some folks are getting nervous about the whole “just around the corner” thesis…

Oik

Just something to keep in mind as you filter all the “oil is back above $50” celebratory banter.

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One thought on ““U-Turn Ok”: Oil Bulls’ Feet Get Colder For 5th Straight Week

  1. The big Lie(s). Low inflation, avg new car cost=30k+, rents up +15% since 2012, household food+energy up 6% since 2012 (NO INFLATION THERE). Numbers are manipulated from the jobless rate to GDP. The poor American public is being inflated daily as prices rise on everything and the divergence between wages (which are NOT keeping up) and inflation. Just ask the guy/girl who does all the service work in your daily life. This is a sham and those with the upper hand are taking full advantage of the “fiat money printing ponzi scheme” of the central bank cartel. These policies are not for helping the majority of the country they are “protection rackets” to prop up their “crony capitalism” buddies. Two questions: Who benefits? Who gets bailed out? NOT THE AMERICAN PEOPLE.

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