Oil plunges 11% in just 2 weeks, shrugging off Iran sanctions and Saudi tension
“Talk of oil prices spiking to $100 has been replaced by another discussion: How low can crude futures go?The oil market has undergone a spectacular reversal, even against a backdrop of looming U.S. sanctions on Iran, OPEC’s third-largest crude producer, and rising tensions between Washington and Saudi Arabia, the world’s biggest oil exporter.”
USAGOLD note: Perhaps oil had simply gotten ahead of the rest of the commodity complex and needed to adjust. We note the change but do not read much into it. . .at least for now. If it continues, analysts will begin to wonder whether or not it signals a global economic downturn. With economic problems festering in emerging countries globally and an imminent slowdown developing in China, it certainly is a consideration.