Why Oil Prices Will Keep Falling

As you will be well aware if you are a regular reader of my musings here and elsewhere, I generally favor a contrarian trading style. That comes from years spent in the interbank forex market, where the intraday nature of most desks’ trading meant that trades became very crowded very quickly. Once a move got underway and gained momentum, it wasn’t long before nearly everyone was positioned the same way, a situation that skewed the risk/reward against that direction.

If everyone is short, there are few left to sell, and even a small…