Oil is ripping higher.
Near 2:30 p.m. Eastern time, the price of West Texas Intermediate crude was up more than 5% to nearly $US49 a barrel, its highest price this week.
The price of oil is spiking as the stock market is moving off its lows of the day. The violent move higher in oil comes just hours after the price of copper had its worst decline in more than six years, falling below $US2.50 a pound in New York late Tuesday night.
As Business Insider’s Linette Lopez noted on Wednesday, concerns over the slowdown in China’s economy are largely taking the blame for the collapse in copper prices, adding to the narrative that the decline in oil prices is about a lack of demand rather than too much supply.
And while copper and oil have been the big outside movers, Jeff Gundlach noted in a presentation on Tuesday night that the entire commodity complex has taken a beating over the last year.
Still, the Dow is down 220 points as the market is set for its fourth straight day of losses.
The price of Brent crude, the international benchmark, was also spiking, briefly moving back above $US50, though gains in Brent have been somewhat more subdued than WTI’s gains.