But first, the dumb money is net long speculative futures at the highest level since 2014, all predicated upon the OPEC/NOPEC supply cut:
Meanwhile, the smart money - U.S. commercial hedgers - is at two year high net short:
End of year inventories are at record high:
And despite the impending supply reduction, the market will remain in daily oversupply, until demand increases, which is assumed to be mid-2017...
Daily production (green), daily demand (red line):
And that is where the story gets "interesting"...
Because the gap between EM currency (red) aka. demand, and Oil (black) just got monkey hammered wide open by Trump's planned tax cut which raised U.S. yields and the dollar:
But fortunately, we've seen this movie before and we know how it ends...
