| First, the price of oil surged this morning as reports came in on social media of an incident in Iran. Then, it dropped rapidly as the details showed the incident as a confrontation between Iranian warships and a Marshall Islands-flagged cargo ship. Such is the oil market these days.
Months after plummeting and holding all markets hostage during a sell-off few had expected– but weeks after a bounce-back rally–oil traders now have very itchy trigger fingers. In the very near term, traders and strategists are looking at the fundamentals and saying oil simply can’t jump too high. The facts are: stockpiles are at an 80-year high and there remains a massive global glut of crude. With the market still vastly oversupplied, prices should be lower...............................................Full Article: Source
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