Yet Another Plunge in Crude: Down 7 Straight Weeks and Negative from Year Ago

Crude is down nearly another 7% today. It's down 33% since the September high and 13.5% from a year ago.

Weekly West Texas Intermediate Chart

WTI Monthly Chart

Stockcharts does not have intraday prices but it does have nice looking charts. The chart shown does not have today's plunge.

There could be a bounce at any time, but technically speaking, a bounce from the $33-$40 level seems more likely.

What's Going On?

  1. The US and Russia are pumping record amounts of oil.
  2. Trump granted a number of nations exemptions on his Iran sanctions
  3. OPEC infighting
  4. Fallout from the brutal killing of a Saudi dissident journalist
  5. Slowing global economy

Mike "Mish" Shedlock

No. 1-9

Central banks will never allow oil to drop below $40,that's their trigger to start buying,that why earl went from $28 to $78 in 3 years with demand even with collapsing demand!


These prices are amazing! And he was only a jouralist... a muslim one at that. He was a citizen, but only an immigrant like ted cruz. I mean, really, who cares if they cut him up and dissolved him... have you SEEN the price of gas?


#5, slowing global economy, is the unpreventable cause of what's going on, and will continue to go on - or should we say "stop"?


How long until there's massive and serious systemic defaults in the shale oil producers? Can you say "hyperdeflation"? Can the US banking system really survive this kind of hit, along with everything else that's likely to implode from the higher rates?


Anyone got any advice on how to distinguish speculative pressures from supply/demand pressures?

Then there is the question about what volumes of oil are actually changing hands at these prices versus at contracted prices? There are some indications that the volume of oil actually traded on the European Brent market is quite small -- and let's not forget that the world's favorite oil company BP once paid what was then the largest fine in history for manipulating the Brent market.

And these days, one has to wonder about the shadowy Chinese project to create a strategic oil reserve. Have the Chinese stopped buying extra oil for storage?

Seems there are more questions than answers.