by Wolf Richter
The moment of maximum pain.
Goldman Sachs called for the end of the epic short-covering rally that had whipped crude oil, oil & gas drillers, and the broader markets into froth over the past three weeks. As if on cue, the rally started to unwind today. But it was scheduled for demise from get-go. When oil fundamentals are this terrible, they eventually rule.
And here is what that rally did: It inflicted maximum pain and destruction on the short sellers that had piled into the trade.