Ryan Littlestone of ForexLive.com examines how—partly as a result of the IMF growth cuts—oil has slumped in price once again and why we’re still in sell rally mode rather than pick bottoms mode.
Once again oil has slumped in price and the IMF growth cuts have helped them on their way.
Brent is well on its way to the June 2012 low around 88.50 while WTI is faring a bit better and is holding above the recent lows at 88.00.
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The only saving grace from the IMF report was that they upheld Chinese growth as that might have been the straw that broke the camel’s back Tuesday.
Even so, there’s no let up in the bearishness in oil and we’re still in sell rally mode rather than pick bottoms mode.
By Ryan Littlestone of ForexLive.com
