Oil is in a correction, and could plunge even further


Here’s the big problem with oil. The commodity’s fundamentals simply have too many cracks in the foundation to support higher prices. U.S. production continues to grow, surpassing 10.25 million barrels, and I expect another jump in rig counts this week.

Last week, we saw an increase of 26 oil rigs, to 791 — the highest level since 2015. One result from increased production could be a series of weekly inventory builds from the Department of Energy, and we could see a massive unwinding in speculative positioning, currently near the highest levels since 2006.



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