From FT Alphaville:
It’s technical
Commodities had a rough Tuesday, having been led downwards by oil. The front-end US benchmark West Texas Intermediate contract settled at $99.50 a barrel, down 8.2 per cent, having lost more than 10 per cent earlier. Brent was 9.5 per cent lower at $102.77 per barrel, its second biggest one-day absolute fall on record in dollar terms. Both markets are struggling to rally much this morning.
Why? The commentariat was quick to claim that recession fears were curtailing oil demand and knocking the price floor out (an argument set out in easily quotable form by Citigroup that morning, coincidentally).
That there was no reason for recession fears to have redoubled seemed not to matter....
....MUCH MORE
