Crude oil prices fell below $40 a barrel signaling that not all is well with the global economy. In a global equity market rout, fear trading has taken hold as traders run to the safe haven of bonds and run from just about everything else.
In the age of derivatives, swaps, and electronic money transfers, a new form of warfare has emerged: financial warfare. Recently, the United States has passed sanctions on countries such as Syria, Venezuela, and North Korea , but the majority of energy related sanctions passed have been targeted at Iran and Russia.
The price war in crude oil is over if you want it to be! At least that is the talk in the energy complex where Saudi Arabia declared a price war against the shale producers at the November OPEC meeting.
Crude oil is rocking again as the ultra-bearish arguments are falling to the wayside. Better than expected data out of Europe, a crude draw reported by the American Petroleum Institute and Saudi oil selling prices are reflecting better-than-expected demand and lower U.S production.