Oil is getting smoked.
On Tuesday, the price of oil was down more than 4.5% with West Texas Intermediate crude prices moving back towards $US50 a barrel.
Near 1:30 pm ET on Tuesday, WTI prices were as low as $US50.32.
The latest drop in oil comes as the market begins to feel out whether the recent climb in oil prices is the beginning of oil finding a meaningful bottom, or just a “dead cat bounce” on the way to the commodity hitting even lower prices.
Commentary from analysts of late have not expressed confidence in the recent bounce, with Citi’s Ed Morse notably saying that WTI prices could fall as low as $US20 a barrel.
And analysts at Morgan Stanley last week outlined with any bounce in oil prices likely wouldn’t hold.
Here’s the action on Tuesday, which comes as stocks are broadly higher.
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