Many investors assume the price of oil is exclusively about demand. So why would Hedgeye be bullish on oil in a Quad 3 environment where growth is slowing and there is a perceived slowing in demand?

As Hedgeye CEO Keith McCullough explains in the clip above, the bullish setup for oil right now is actually based on its relationship to the U.S. dollar.

“If you go back to 2008, which I think most of you would remind yourselves as the most obvious U.S. demand slowing period, where did oil go? $150 a barrel,” McCullough explains.

“When the Fed is easing in Quad 3 and it goes to the fourth or fifth rate cut, the most manifest returns are in things like commodities. It’s a dollar trade, not a demand one. I actually don't give a damn about demand.”

Watch the full clip above for more.

McCullough: Bullish Oil Is About U.S. Dollar, Not Demand - the macro show