A ballooning spread between the price of U.S. and European oil, coupled with lower shipping costs, has traders scrambling to take advantage of what may be a brief window of opportunity to ship crude to higher priced markets.
Gold rallied to its highest since 2014 today and crude struggled to recover from deep losses, as renewed fears over the impact of Britain's exit from the European Union pushed investors toward safe havens.
Crude oil prices eased today as the market's focus returned to oversupply as production from Nigeria and Canada revived, and Organization of the Petroleum Exporting Countries output reached a record high in June.
Crude oil prices fell sharply at the end of last week and have extended their losses as the new week begins. At the time of this writing, Brent oil was back at $50 per barrel and WTI was hovering around $48.50, a good 6% off its high on Thursday.
Oil prices jumped over 2% on Monday to their highest since November 2015 on growing Nigerian oil output disruptions and after long-time bear Goldman Sachs said the market had ended almost two years of oversupply and flipped to a deficit.