RE:A Big Reason the Price of Oil is FallingWhat we have just witnessed is a masssive sell off by hedge funds of long positions in Oil. including crudes and products . The hedge funds as a group were long. now they are less long. So there could still be more pressure. I doubt that many of them will want to go net short however. The physical market is under supplied , and there is very little to change that. Demand is still not at full strength due to many factors that remain to be sorted out. Including seasonal weakness and lingering Covid issues. Exchange rates may hurt demand, but the current decrease in commodity pricing will outweigh the exchange rate moves for most nations.
I believe that a lot of what is happening now will reverse once the hedge fund managers foresee the end of SPR releases. That will be before the end of the de-stockpiling actually arrives !!