Oil Tops $42 As OPEC Headlines Seek To Start Another Short Squeeze

on
Having plunged yesterday on 'real' excess supply data, WTI crude is rallying this morning - back above $42, NYMEX close dump levels - on the heels of the latest OPEC/NOPEC headline farce on output freezes (the day after Saudis announce record output!!)...
Just a day after Saudis announce record output, the following headlines hit...
  • *SAUDI ENERGY MIN. TO MEET OPEC, NON-OPEC PRODUCERS NEXT MNTH:DJ
  • *SAUDI MINISTER: TALKS COULD COVER STABILIZATION ACTION: DJ
  • *SAUDI ENERGY MINISTER: GLOBAL DEMAND FOR OIL STILL STRONG: DJ
  • SAUDI OIL MINISTER SAYS EXPECTS DE-STOCKING TO ACCELERATE IN ALL PARTS OF THE WORLD PROVIDING SUPPORT FOR OIL PRICES - STATEMENT
And so... oil rallies... (though we wonder if this is just another stop run to that NYMEX close dump ledge)
 
Simply out, there is only one reason to utter such nonsense. As even CNBC gets it, one trader summarized it perfectly.
"If you look at the amount of short interest in WTI and Brent, these flurries of speculation from OPEC, coming from the weaker members, tend to be when you see a run up in short interest," Priddy said.
"It's kind of opportune of them to start a short covering rally. I think in the next couple of months, we're going to see repeated attempts to keep some of this chatter alive."
Source: http://www.zerohedge.com/news/2016-08-11/oil-tops-42-opec-headlines-seeks-start-another-short-squeeze