Another 6.2% drop in the Shanghai composite helped drive oil and industrial metals to a six-year low, and only seemed to slow after China pumped 120 billion yuan worth of seven-day reverse repurchase agreements, or reverse repos, which are a short-term loans to commercial lenders in the money market.
Oil rallied further after the leaked Fed story. Apparently the Fed did not want the market thinking that rates were going up anytime soon so they dropped a dime to their buddy Jon Hilsenrath at the Wall Street Journal.
The oil market got heavy as word of a possible story of a Fed exit, which started to permeate the trading floor on Friday. The other issue is oil going down to the Gulf Coast and whether our production boom will overwhelm the refineries.