by John Galt
March 9, 2017 05:30 ET
With little warning West Texas Intermediate crude oil contracts took a dive just after 5 a.m. Eastern Time with a fast $1.00 drop bringing the price below the $50 per bbl. level. Brent has also dropped below the $53 level which means this sell off could accelerate throughout the day.
As of this posting, the only Middle East equity market with a major downturn is the Abu Dhabi (ADX) Stock Exchange is reflecting any negative impact from this sudden drop but it has been down almost 3% since trading opened due to localized banking issues:
If the price doesn’t stabilize, expect a break below $48 quickly and the oil bears to seize control of the market’s direction in the short term trading horizon.