Presumably the Trump admin’s is shorting futures to keep them artificially low. In the ballpark of $100B of unusual short activity, at around $100/bbl, so around 1B bbl of volume:
https://x.com/KobeissiLetter/status/2036194247976870094
Current SPR shows 155M bbl of sweet:
https://www.spr.doe.gov/dir/dir.html
How tf are they gonna make delivery without a) completely emptying the SPR and still coming up short, b) defaulting on the contracts, c) taking massive losses and letting the price skyrocket?
This is assuming they don’t magically fix the Hormuz problem in the next month.
Am I miscalculating or is this insane?
So if the Trump admin is shorting Brent, how tf are they gonna make delivery?
byu/xynith116 inoil
Posted by xynith116
2 Comments
I think its a last ditch effort to keep the market from imploding, and is why Trump will TACO. The thing is, if Israel doesn’t stop, Iran won’t either.
I don’t think they would be doing this without some kind of hope they will control things soon although it seems like a massive risk as I can’t see Iran rolling over or getting beat easily.
The US oil producers could be in on the short somehow to keep prices low, is that possible?