There were a huge amount of shorts that got caught offsides when Russia invaded Ukraine. They had to cover, driving the price to $130. It peaked, then the longs cashed out as the VIX got to expensive to carry insurance with options.
Read more here:
https://twitter.com/JKempEnergy/status/1503693404122894337 Now there are a record low in short positions, therefor limited suside spike potential.
War news caused oil to go from +40 to -40 already, and we still have a war. It is overdone to the downside at $95, so expect a rise soon, to at least 50% of the drop, $115 would be my best guess.
Inventories ae dropping, and the demand supply imbalance continues.
Iran, OPEC, and SPR releases will not be enough to replace the Russial bbls off the market.
China imploding is not an issue to the western markets, proven by positive futures.
Oil stocks are amplified, so consider this a time to buy.
Remember, nobody can call a bottom, and the market can remain irrational longer than you can remain solvent.
My thoughts.
Good luck today all!