What the hell just happened in Crude?

D

Daxspreader

Hey guys

Anyone have any idea what the hell just happened in the closing hour in the crude futures.

Cant seem to find any real news - was it just a mega short squeeze with everyone running for the door at the same time!

Nov WTI went from 78.44 to 80.80 in 35 mins!
 
That was special wasn't it!
It acted like one huge institutional order with a few pile ons.

I could not get much color from my NYMEX pal since it was a GLOBEX order(s) after the bell.

I will keep my ears open, as I am fairly active in this radioactive complex!
 
Nice one Surdo - let me know if you hear anything.

Tomorrow should be pretty interesting.

I think a lot of people (me including) got caught a bit off guard with that move. Off the back of a set of bearish inventory figures as well. unbelievable.

Oh well looks like im short again! :)
 
From what i see , its just large short covering and some aggressive buyers getting bargains. Just look at the volume, upside wont last with current condition unless there is some events that will support the price. Yes tomorrow will be a interesting trading day for crude oil.
 
Quote from Investmentc:

From what i see , its just large short covering and some aggressive buyers getting bargains. Just look at the volume, upside wont last with current condition unless there is some events that will support the price. Yes tomorrow will be a interesting trading day for crude oil.
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Why was this "short covering" done upstairs?
 
There are those who shorted between 81-82USD price so its consider a good deal for them, these are fund-managers (mostly technical) who go for mid-term trading not those who expect an invest term to last for years, dont think they will risk it by not taking profit and wait it for fall far lower at range of 75USD, dropping to 78USD will attract buyers and prompt technical and some other fund-manager to take profit and stay sidelines. Further downside is possible if there is no events to push the price...(which i dont see we have any now, low probability that any current system/hurricane is going disrupt supplies in foreseeable future and build of inventory in first time in 5weeks is really bearish for the markets)
 
I really expected that after the direction given by the data, a big sound correction has begun. Seems like the price is too manipulated and pushed up by institutions. Remember the OPEC decision to raise output by 500 000 barrels? It caught (reasonable - in my books) bears off guard, and today the same thing happened. And remember how just when consolidation was happening around the $80 price, Goldman Sachs raised their oil price expectations to $85, and solely on that news, the price spiked (again)? Maybe its just me, but I reckon the oil price currently is a balloon, pyramid type of scheme, forget all these funny "technical buying, rising demand" reasons given by media entertainers.
 
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