Very true! Although some members of OPEC are currently meeting...

Very true! Although some members of OPEC are currently meeting to form a plan to present to the others OPEN members responsible for the glut to try to convince then to cut. May not happen in the short term though.

Interestingly, in the last three corresponding periods where shorters have placed large shorts on oil (like they are currently) they have had to scramble to cover due to sharp recovery. There are a few saying this is likely to happen again. See below:

Reversal Higher Argument

Not everyone is on the bearish bandwagon.

The influx of bearish bets from money managers may leave the market vulnerable to a rebound. The past three peaks in short bets have been followed by price gains ranging from 29 percent to 95 percent.

The oil market is poised for a “violent reversal" upward, oil trader Andy Hall wrote to investors in his Stamford, Connecticut, hedge fund, Astenbeck Capital Management LLC. "Funds have made a significant amount of money getting short oil in the last few weeks and people will want to take some profits off the table as we approach levels which will only accelerate U.S. production declines."