Back on December 2nd we temporarily deviated from our long-standing negative view on oil when we wrote that “Absent a new catalyst to drive oil lower through the end of the year, we anticipate a rally in crude and oil-related stocks to emerge and suggest establishing trading positions in the days immediately prior to the December 16th Fed rate decision… Fears of rising production from Iraq, Iran and even Libya coupled with the lack of a new demand catalyst will likely return downward pressure on crude within weeks.
