Oil Plummeting, Down $4
Oil prices are plummeting today, at one point down slightly over $4 a barrel. The culprit this time isn’t speculators, but fundamentals, specifically inventory data. It came in much higher than expected with a 5.1 million barrel increase over the prior week, nearly 5X greater than analyst estimates!
Frankly I’m impressed that the broader market is holding up as (relatively) well as it is. Over the past several months this sort of data would have triggered fears over a slow or nonexistent recovery.