"Great spot to get more aggressive on the short side of Energy (again)," Hedgeye CEO Keith McCullough wrote in a note to subscribers earlier this morning.
"Oil ripped to the top-end of my immediate-term risk range and failed (again); no immediate-term downside support in the risk range for WTIC to $25.77 as the upside in Oil’s Volatility (OVX) remains 81!"
Our Potomac Research Group colleagues Joe McMonigle and former Energy Secretary Spencer Abraham have nailed the call that oil prices are headed lower despite rumors of an OPEC production "freeze."
Here's what McMonigle wrote in a recent note to institutional subscribers:
"As the energy world gathers in Houston this week for IHS' CERA Week conference, Russia announced that talks with OPEC members on a production freeze will continue. The Russian energy minister said he expects an agreement by March 1.
We are highly skeptical that an agreement will be reached or that it changes the outlook for oil markets. There is nothing new here."
Watch McMonigle in the 3-minute video below explaining why this will remain a 'painful' year for oil.