WTI Crude Oil Crashes Below $50 per Barrel

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.

  • Zetetic

    Help the dumb guy out… is this from overdrilling (too much supply) or a case of a decrease in manufacturing (no demand) (the two reasons I see prices move downward most often) or something else altogether?

    • 1. China’s economy is slowing down A LOT more than being reported, thus demand is down and they almost have their strategic reserve filled.

      2. The U.S. doesn’t need to import as much due to better technology in our cars plus the shale industry.

      3. Europe sucks.

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