Crude oil closed on Friday at $115.20, marking a 21.4% decline from the high price of $146.60 achieved in early July. The definition of a bear market is a 20% or more decline in price from the market high. By that definition, we are in a bear market for crude oil.
The prior 3 oil market corrections lasted 1.2 years and averaged declines of 62%, 53% and 35%, so we may see more price movement on the downside...a welcome relief at the pump.
Stock prices do well when oil prices go down, and this may offset some of the recent volatility and value loss in the stock market, and may explain the recent rebound in the stock market...keep a watch on crude oil as an important barometer for the broader market and economy.
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