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Oil Plunges Back To $36 Handle As Short-Squeeze Ends

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Remember last week when oil prices spiked despite a rise in crude production, inventory builds, continuing storage concerns at Cushing, and the admission that there is no March OPEC/NOPEC "freeze" meeting. Well that's all over. April WTI just broke back to a $36 handle - erasing all of those algo gains...

 

Strong USD, weak Oil... Rinse. Repeat.

 

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As we noted previously, catching a falling knife is hard, especially when it’s covered in oil. The International Energy Agency today said oil prices may have bottomed out. Several people have tried to call the oil’s floor since prices started falling in the summer of 2014. So far nobody has been right.

 

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Of course it's different this time, this really is the bottom. Except, with ETF shorts having collapsed to "norms" the buyers of last resort will have their work cut out maintaining the dream with no one left to squeeze...

 

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Charts: Bloomberg

 

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