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IPFS News Link • Oil

What's The Real Reason Behind Oil's Collapse

•, by Tyler Durden

If one listens to OPEC and other oil-exporting nations, the main culprit is supply - whether with or without Iran's output - and the marginal price is set by whether supply is in excess or deficit. One thing that OPEC+ always assumes is that demand is stable, and most likely rising.

On the other hand, if one listens to Wall Street firms, such as Goldman for example which have been urging their clients to keep buying crude all the way down into this historic plunge (as Goldman's prop trading desk has been selling), the reason for the sharp drop has little to do with supply and everything to do with market technicals and the underlying market structure.