The oil patch shut ins have catapulted prices from the abyss back up over 50%. The reason for the incredible rebound is more signs of retrenchment in oil production, almost ensuring a time of oversupply into expected future shortages.
Oil prices are trying to turn the corner, yet there is still concern about oversupply. The week starts with a bit of risk-off, and the front-month The June WTI futures contract is acting like the weakness fears are still high. .
The USO ETF is leading the exit from the July WTI futures contract. Fears that storage will top out and predictions of another assault on negative oil prices are making firms and exchanges force the hand of participants and pressure them to exit the market.