Goldman: Don’t Bet Against Oil

Confirming sentiments in previous Red Swan observations, oil is indeed rising, hitting $80/barrel as summer is poised to roll in for the northern hemisphere.

Hedge funds and other money managers have cut their long positions for several consecutive weeks, perhaps as a bit of profit-taking, or maybe because the bullish positioning had appeared to have gone too far.

… But betting that oil prices have hit a ceiling and liquidating bullish positions is a “dangerous” game, according to Goldman Sachs.

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