[Cowboy Bob]

Maybe people are just closing positions and they needed to buy back a lot of contracts?

[SAJ]

Not really, Bob. Reports started circulating Friday that production worldwide was dropping. The big specs glommed onto this and bid up crude $4-5-6 dollars. Then, reality set in; w/w production of the major players is actually UP, year over year. Then, today's API was pretty negative for prices, too. Last quote on October WTI crude is 44.62/bbl, down 79 cents. Been as low as 43.21 today.

We had about a day and a half of short covering, hence the spike up, but current supply/demand can't support $48 crude just now.

Also, it's almost always a good idea, in crude, to fade the current conspiracy theory (tip, just FYI)

Good trading to you!