Long oil is crowded

Continuing a thread that a truce is coming in Ukraine, the price of oil isn’t surging anymore and

Russian oil is flowing and being sold in the market, albeit at a discount. This is understandable, anything tainted can’t command the going spot price.

Calculations and beliefs that all of Russian production has been lost and left the global market is foolhardy.

Long Oil is a very crowded trade.

Is a truce is reached, a $25 drop in the oil price is plausible.

It’s prudent to trim oil equity exposures.

March 29, 2022

by Rob Zdravevski

rob@karriasset.com.au