He says as oil trades just above $30.00
Jeffrey Gundlach is on wires saying technicals call for a short-term bottom in oil today. The current price for WTI Crude is trading at session lows just above the psychological $30.00 per barrel (low at $30.04). IT may bottom but where? The high today extended to $32.23.
The $2.19 fall from the high, represents a 6.79% fall. The oil market has gotten used to these high percentage intraday moves. I know we have recently seen a >8% one day move in the Shanghai composite, and the move lower this year in stocks has been quite large, but the oil market regularly has pretty high % moves at these prices.
As oil prices continue to erode, so does the risk to banks who have made loans to the oil companies. That debt becomes harder and harder to pay back if backed by future oil revenues. It does not help things.
