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Below is a brief excerpt transcribed from Monday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough.

McCullough: Oil Volatility At 'Unbelievably High Levels' - 04.20.2020 sinking oil cartoon

Let’s talk Oil.

I saw oil down about 3.5% this morning when I woke up. Subsequent to that, the Saudi’s have come out and said they were going to cut oil production by another million barrels per day.

That got it to pop off the lows and it went up about 2%. Now it’s down again.

Let me say something I've been saying for a while now, we're seeing unbelievably high levels of Oil Volatility. Also don’t forget the Oil Vol went out right around 98 on Friday.

I’m going to stay with the short position in Real-Time Alerts. I have an immediate term downside in the Risk Range to $11.14 on WTI and I think the Saudi’s are probably panicking for good reason. As we “re-open” the economy, it’s not the linear V that most people are hoping for, particularly on the demand side.

I’m staying short that and looking to short energy stocks (thankfully I haven’t done that in a while). Energy stocks led the rally last week up over 8% on the XLE.

McCullough: Oil Volatility At 'Unbelievably High Levels' - 5 11 2020 12 59 06 PM