WTI crude oil is up $1.15 today in a rebound after four days of heavy selling. It was a particularly curious move in crude given that the dollar was falling and risk assets were broadly stronger.
Former Goldman Sachs chief commodity analyst Jeff Currie has weighed in with a theory that the selling was a result of the "oil carry trade".
He describes it as a trade to borrow paper/physical barrels, convert into USD, and invest in US Treasuries.
It "squares a record weak financial oil market against a tight fundamental oil market, as the market is liquidating both physical and financial barrels for US dollars," he writes.
That sounds like a stretch today but the recent oil move is certainly a puzzle.
WTI crude oil daily
h/t @ericnuttall