Crude Tanks, Rumors Ensue
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Crude saw a sharp mid-day drop Monday on no apparent news. The move has traders scratching their heads. There have been all kinds of rumors to explain the move, but so far nothing exactly pinpoints the reason behind the action.
Here is a rumor run down:
- Fat Finger Trade: While this makes some sense, the drop in crude coincided with the drop in gold and stocks. There couldn't have been a fat finger in all these asset classes, right? Also the CME said they aren't aware of any tech issues related to the crude sell-off.
- SPR Release: - Energy departments in the U.S. and abroad have flirted with the idea of releasing some stockpiles from their strategic petroleum reserve (SPR). However, today the U.S. said nothing has changed regarding the SPR. In addition, traders noted Brent dropped before WTI, which would somewhat dispel this rumor.
Oil ETF United States Oil (NYSE: USO) last traded at $35.88, down 2.6 percent.
Here is a rumor run down:
- Fat Finger Trade: While this makes some sense, the drop in crude coincided with the drop in gold and stocks. There couldn't have been a fat finger in all these asset classes, right? Also the CME said they aren't aware of any tech issues related to the crude sell-off.
- SPR Release: - Energy departments in the U.S. and abroad have flirted with the idea of releasing some stockpiles from their strategic petroleum reserve (SPR). However, today the U.S. said nothing has changed regarding the SPR. In addition, traders noted Brent dropped before WTI, which would somewhat dispel this rumor.
Oil ETF United States Oil (NYSE: USO) last traded at $35.88, down 2.6 percent.
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