30 days ago • Posted by Paul de La Baume

WTI Crude Oil re-tests lows in 'Flash Crash' fashion! $USO $XLE #oil 'trading

Oil prices tumbled as traders fear the perspective of rapidly falling global demand and ample supplies as traders speculate that Russia didn't reduce output as planned. The market is pricing uncertainty around the OPEC+ cuts given there are some signs Russia seems to have not followed through on the pledged output cuts. So, for oil traders, this should add volatility and make it more difficult to find a market equilibrium. For opportunistic equity investors, it could also offer buying opportunities as stress potentially comes back to oil-related stocks. However, the oil&gas sector may continue to underperform because of the weakening macro backdrop.