Extremely low oil prices are tempting to trade

Oil price levels weren't spared from the further drop even after the OPEC+ unprecedented agreement to limit the production of oil to 9.7 million barrels per day came to action. This, in fact, meant an end to a price war between Russia and Saudi Arabia. However, the real data show that Saudis are still reducing the oil prices when it comes to the Asian market where the demand is currently the highest. This means that price war continues and oil producers are trying to sell the barrels way under their price on the spot market.  And despite the mentioned production limit deal, the demand is still critically low and the market is overflowing with millions of barrels full of cheap oil. This can go on for several following months.

But one thing is certain. At this point, there’s nothing that would suggest that the oil prices should go up in the near future. This is the music for the ears of all those who are betting on oil prices to go down and “go short”.