So you maybe thought oil price had bottomed? Maybe you thought now was the time to buy oil again? Well, some people did, most notably the big pension and saving funds, ie. managed money.

The big banks and the big oil producers saw it differently. Their total short position in oil futures reached 405,000 contracts last week, a level not visited since July 2014.

The strategy is not new. Since fall of 2010 Big and “smart” money has consistently shorted oil when the taxpayers have been buying, usually when the price was going up. It’s no different this time. Obviously the banks are expecting the price of oil to drop further.