Shorts Crude oil inventories at Cushing have dropped to their lowest level for this time of year in over a decade, suggesting that a short squeeze could be coming for the bearish portfolio managers who have amassed a lot of short positions in U.S. crude oil futures.
The falling stocks at the hub providing the physical delivery mechanism for the NYMEX WTI futures contract may have already started to unnerve traders who had turned extremely bearish on U.S. WTI Crude by the middle of January.
But in the latest reporting week to January 23, money managers bought a lot of WTI contracts and liquidated a lot of shorts, slashing their bearish bets on WTI by the most in nine months.
The depleting stocks at Cushing and the bearish sentiment on the oil market, especially the recent more negative positioning in WTI Crude, could lead to high prices in the near term, Reuters market analyst John Kemp argues.
Maybe this is the main reason Biden don't want a war with Iran .
It sure sucks now for not building KEYSTONE XL and if oil keeps going up during a election year well you know the rest of the story . BCRNW