TORONTO (SHORTDATA.CA) 2.35AM – Oil prices have plunged overseas Monday and are down over 4% after output talks failed in Qatar between major oil producers Saudi Arabia and Iran. Did the smart money already know talks would fail? ShortData.ca reports significant short sale increases on several oil & gas firms including TransCanada Corporation (TRP) where short trades increased 77.28% from March 16 2016 to April 1st 2016 representing an aggregate dollar value of over $38.29 Billion dollars. Enbridge has also seen a large increase of 27% where its April 1 short position was valued at approximately $28B
The tensions between Saudi Arabia and Iran continue to cause negative concern for the market place and have essentially been blamed for the failure, and possible dent to OPEC’s credibility. OPEC’s relations could now be at an all time low and it appears that the smart money used that knowledge to justify their multi-billion dollar short bet.
Brent Crude futures fell as much as 6 percent in early trading on Monday and U.S crude was down over 4.5% at $38.49 a barrel. Since 2014 oil prices have fallen as much as 70%
We expect new short numbers to be out later today and it will be interesting in seeing the changes in short positions for Canada’s energy sector. Stay tuned.