The way oil prices jump and tank based on stupid reports and inventory levels is quite frankly absurd. We should have a much better gauge of just how much slack there is.
Monday: oil supply unexpectedly grew by 1 million barrels, price tanks 3-4%
Friday: baker Hughes reports rig counts dropped by 100, price shots up 6%
So fucking stupid.
It is likely because there are no new serious long investors, just people playing vol now.