Venezuela has requested extraordinary OPEC meeting

Venezuela has requested an extraordinary OPEC meeting to discuss the US flooding markets with oil, according to Maduro.

I can see how countries like Venezuela and Russia would think the US is trying to flood the market and crush prices. But what I think has happened is that shale producers and others have been caught out by the swift decline in prices over the past few months and begun to hedge aggressively.

That selling was compounded by oil funds getting blown out in the past week.

All and all, it’s been a dramatic decline and I think oil longs might want to dip their toes in here. The best trade I see is long Brent/short WTI.

As an aside, I just learned that retail gasoline prices in Venezuela are the lowest in the world at less than 2-cents per litre. That’s insane.