Crude Is Crashing

WTI Crude is suffering its biggest down day since September 2015 - crashing over 5% to a $50 handle and the lowest levels since 2016...

WTI and RBOB are plunging after an initial post-DOE bounce... April WTI just tested to $50.05...


As Bloomberg notes, net long commitment of traders shows WTI and Brent positioning is “well over-extended” and could spark liquidation of long positions as prices have remained range-bound for a couple months now, Scotia’s energy commodity strategist Michael Loewen writes in note, citing CFTC data.

Market could get worse before improving as traders reduce holdings by selling WTI and Brent contracts into front-end of the curve.

WTI has ripped through the 50-, 100-, and 200-day moving averages...

 

Additionally, this is the worst day for USO (Oil ETF) since October, with about 220k puts on the U.S. Oil Fund (USO) changed hands, compared with a 20-day average of 47k and 57k calls traded today.

 

And the Loonie is plunging too...