The key catalyst for today's spike is another convenient report by OPEC, according to which the oil exporting organization will hold informal talks at an energy conference in September. However. the biggest threat to oil's recent price decline is that, like in February, hedge funds are now massively short. In fact, according to Bloomberg, hedge funds have gone all-in on lower oil prices, counting on seasonal weakness to play out again this year. Specifically, money managers increased wagers on declining crude prices to a record as futures dropped to the lowest in more than three months.