Probable reason for yesterday's oil price drophttps://www.bloomberg.com/news/articles/2015-10-27/u-s-plans-to-sell-down-strategic-oil-reserve-to-raise-cash
Luckily sale will only starts 2018. Additional sale for $2 billion will only start 2017. And actually the Congrfess expect an average sale price of $88/bbl.
"China has already stockpiled 200 million barrels and will add nearly 20 million more this year. Beijing plans to increase the size of its reserve to 500 million by 2020. Germany, Japan, South Korea, France, Spain, Italy and other big importers also have their own strategic oil reserves. "
Also they expect to proceeds of 5 billion . Divided by 58 billion bbls that means an average sale price above $85 /bb.
https://oilprice.com/Energy/Crude-Oil/SPR-To-Be-Used-To-Raise-Cash-For-US-Gov.html
IMO the hedge fund guys must have already heard of that, and they probably think the sale will go ahead immediately. This explain the crazy drop of all oil stocks in the last 3 months, and may also explain why CPG cut its dividend while BTE suspend its dividend. An immediate sale of 58 million bbls is a much much bigger issue than Iran.