Oil has dug itself a deep hole today.
Crude has repeatedly posted impressive reversals despite bearish news but today it will take a miracle. WTI crude is down $5.34 to $112.16.
This might be related to settlement as the July contract runs off on Tuesday but it's no better in the August contract. It's down $5.07 to $110.18.
The main concern for oil at the moment is macro. There's a growing sentiment that the global economy will slow in the months ahead, perhaps dramatically. There are few assets more-sensitive to global growth that oil. There's also a changing series of beliefs around Russia and whether they can get oil out. Yesterday foreign minister Novak sounded a confident tone.
