The Bottom is Near...Inventories of product and crude continue to drop globally, despite poor activity, weaker demand, people staying home, seasonal weakness, economic recessionary expectations, China, war, and EV conversions on a global basis.
If this is going on now, what will happen when things return closer to normal?
The oil market has undergone 4 bottoms since 2015. The ends of which have been signaled by the reduced paper interest in long positions held, just as we have now.
It is hard to pinpoint the exact bottom and turn even though all these bullish signs in the oil market remain. In order to not miss the turn, I maintain a heavy core position, but still have dry powder to use for trading. It is perhaps most wise to wait for the turn, and then jump on the train.
I find these 2 charts useful for one to see the forest through the trees: