As oil was tumbling for the second day in a row this morning, and losses were likely mounting at some hedge funds and institutions, a rumor hit the market. Iran might be willing to cut production. Yeah, we know this is nonsense. Iran is not going to cut production because they are arch enemies of Saudi Arabia and are funding proxy wars all over the middle east. But the rumor served its purpose. Oil surged higher and is now positive on the day. It is highly likely that there were certain hedge funds that needed to unload their massive oil contracts and were taking a beating. Usually these shady practices are reserved for options expiration week but apparently not this time. Investors should be aware this happens more than the media reports. I would welcome an indepth news story on this type of rumor release as it only serves to hurt the little investor.

By Pro-Trader

Anthony Jackson