OIL PLUNGES AGAIN

JOE WEISENTHAL

OCT. 2, 2014

Oil got crushed yesterday. Then it bounced this morning.

Now, amid a broad market selloff, with the Dow off over 200 points, oil is selling off hard again. Here’s a multi-day chart, via FinViz,  that puts things into perspective — both yesterday’s severe selloff and today’s.

FinViz

 The decline of commodities and the strength of the dollar is probably the biggest story in the market right now, as it’s a sharp change from the market regime that’s dominated for so many years (weak dollar, strong commodities).

There are multiple theories for the decline in commodities.

A slowdown in China is one popular theory to explain the selloff. The European slowdown (which has been exacerbated by Russia tensions) is also a culprit.

Also yesterday there was news that oil produced in key countries (including LIBYA) was more than expected.