What Caused the Recent Drop in Oil Prices? Goldman Trader Chimes In

Tons of questions on the weakness in Crude – Thoughts from our trading desk: believe the move is more of a "catch-up" to weaker physical markets as we moved past WTI options expiration yesterday & as Middle East risk premium has now come out of the market in our view.Bigger picture: Margins have remained weak for a while OPEC continues to export Spreads & DFLs have been signaling weaker fundamentals for several days now Brent breaking through the 200dma…approaching oversold levels (RSI 32.7)… On the vol front, it's interesting…