Let's take a look at how the oil short squeeze took place. In February, oil broke the January low of 2756, falling to 2605 on February 11th. Just as oil was testing and ready to break 26, the UAE Energy minister came out with remarks that they were willing to cooperate on production cuts. This instantly reversed the market off the lows to see it recover 30 in the coming days. Dubbing this the "OPEC put" as it clearly showed members of the organization were attempting to defend 26.
The move, setup a failed breakdown, leaving shorts below 30 trapped:
Crude oil chart sent to clients on Friday... pic.twitter.com/rDqZjno0VU— Chicagostock (@Chicagostock) February 17, 2016