Early signs of a bottom in oil are fading and it’s growing clear and it’s likely that producers are scrambling to sell on bounces.
Put yourself in the shoes of a shale producer with breakeven prices at $75-80. At that point you need to manage risk and stay in business so bounces to $83-$84 after the recent swoon are enough to sell some futures contracts.
In the past four days, bounces above $83-$84 have been sold aggressively. The best hope now is that API numbers to be released after the close provide some reason for optimism.
WTI crude oil
