Here's what's happening! Here’s what’s happening.
First, the run-of-the-mill oil prognostication you see on TV is often less objective than it may appear.
“Analysts” are often fronting for their brokerages… and those agencies are taking short positions on oil.
In other words, if the Chicken Little on TV can persuade the market that oil is going to decline, then his “The Sky is Falling” parent firm makes a nice trip to the bank.
That’s not to say shorts don’t have their place in a market; they do. But that place is hardly as the first reaction, and never to satisfy a self-justifying manipulative move.
Over the past several days, as oil prices rose, these guys have had to quickly wind down their short positions. That’s an expensive proposition.
It only goes to show that there may be some justice in the world after all.
Second, when you get down to the actual oil market fundamentals, you notice some interesting developments…