Earlier in the day, oil suddenly lurched down about $8 to under $138 (it settled just below $139). At one point oil was even down $10. But we can’t say we’re excited about the reason.
Bernanke’s pessimistic assessment of the US economy and OPEC’s anticipation of weakening global oil demand growth shook the volatile markets. Traders are suddenly worried a global recession is coming.
That’s good news for oil prices, but it’s actually not good news for stocks…which jumped higher on the news.