Schreiber shorts WTI crude at Ira Sohn

|By:, SA News Editor

"There's $33B that's net long WTI (USO -0.4%)," says PointState Capital's Zach Schreiber at Ira Sohn. "Now, if you're long, I'm sorry for you, but this could make you feel comfortable," Or, he says, it might make you scared. "I'm sure that will be a smooth exit when all those clowns try to get out of the Volkswagon."

“U.S. crude is being drilled for by the same cast of characters that oversupplied the natural gas market ... We just saw this movie. Why should we expect a different outcome.”

Bearish on WTI crude (he suggests offsetting your short by buying some brent BNO), Schreiber is bullish on the U.S. refineries, naming Valero (VLO +0.7%) and Marathon Petroleum (MPC +0.3%) as two he owns.

ETFs: USO, OIL, UCO, SCO, DTO, DBO, CRUD, USL, DNO, UWTI, DWTI, SZO, OLO, OLEM, TWTI

Earlier Sohn coverage

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