Crude Oil Enters Bear Market and Plunges To 7-Month Lows

Oil Prices

From Tyler Durden: WTI Crude futures are down 20% from their early October highs, with the front-month contract back to a $61 handle at its lowest level since April.

As more details emerged of US sanctions exemptions and the US-China trade war stoked concerns over slowing global growth that underpins energy consumption, WTI has plummeted…

“The U.S. has for now given a lifeline to Iran,” said Olivier Jakob, managing director at consultants Petromatrix GmbH in Zug, Switzerland.

“The end result of the sanctions is softer than expected. The final outcome of the sanctions also confirms the political fear of high gasoline prices.”

Meanwhile, after the close today, API will report U.S. crude inventories – which are forecast to have risen a seventh week.

The United States Oil Fund LP (USO) was trading at $13.02 per share on Tuesday morning, down $0.28 (-2.11%). Year-to-date, USO has gained 8.41%, versus a 3.20% rise in the benchmark S&P 500 index during the same period.

USO currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 108 ETFs in the Commodity ETFs category.

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