Oil just totally crashed. One possible culprit is this Reuters story, showing that OPEC production is surging.
There are a host of other factors that might be driving down oil as well.
Dave Lutz of JonesTrading said these are some of the things being discussed in relation to the move:
Libya Output jumps to highest since 2013
OPEC September Output higher, and revised higher
Hong Kong sparking concerns greater Asia slowdown
Russia headlines sparking more EU slowdown concerns
PMIs from China, Japan and EU tonight should all come in very weak.
chatter that PEMEX is hedging for lower Oil
Technical — Brent has taken out September Lows….. WTI eyeballing a “outside” reversal day
Of course, could just be a massive commodity markdown into Q End. Crude, Silver, Gold, Wheat, Soy all off 1%+
Indeed it has been pretty ugly across the commodity complex Tuesday. Silver is getting smoked, too. It’s down 3%.
Natural gas, soybeans, palladium … you name it, it’s all going down.
Of course, the flipside to all this is that the dollar is on a damn tear, surging to multiyear highs.