We've seen significant demand destruction in the $130+ range.
There can only be so much risk premium factored into a barrel of crude.
I wonder how many people out there placed wild bets at $130+ at a 5% margin hoping crude broke $150?
Do the math.
The minimum to buy is 1000bbl at a 5% margin.
130 x 1000 = $130,000
5% is $6500
so for $6500 you can control $130,000 worth of oil at $130 per bbl.
Oil goes up to $147 per bbl you make $17,000 off your $6500 investment.
Oil drops to $115 you've lost $15,000 plus $6500. At these are just the minimums!
There has to be a few pissed speculators out there.