Crude Oil is down to $115 (continuous cash futures contract). We also have some Backwardation — meaning futures (September contract) versus cash or spot contract.
That’s bad mojo — Markets are reading this as a positive, but I am less convinced. This looks to me like demand destruction brought on by a global slowdown is what has led Oil prices lower. That is not a good long term sign.
Efficient Markets? Well, if you think Whoopee! Global Recession! then sure. To everyone else, not so much.
For the more technically minded traders out there, consider these Fibonacci retracements: A pullback to $110 is very likely . . .
Source: FusionIQ, Bloomberg