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What's Behind The Oil Plunge And How To Trade It: JPMorgan Traders Explain

Tyler Durden's Photo
by Tyler Durden
Wednesday, Jun 22, 2022 - 02:28 PM

While stocks are dumping (if regaining some ground as Powell fails to surprise, just as we predicted), the biggest change overnight according to JPM's trading desk is the sell-off within the commodity complex, which the bank's commodity traders say they would use as an opportunity to buy (despite oil remaining sticky high in comparison to the recent drop in 5Y breakevens).

First, the JPM commodities team tries to explain the overnight 5% plunge in Brent which pushed it below the 100DMA for the first time this year...