Crude oil prices are still under pressure after a volatile Chinese stock market trade and a big miss by BP. BP reported a loss of $5.8 billion dollars in the second quarter as oil prices plummeted and lost revenue.
It has been a difficult time for commodities across the board, at least from a long perspective. Until recently, it was the shorts in markets that have been struggling as the global crises like China and Greece did more to stop rallies rather than actually produce any real selling.
Crude oil prices neared four-month lows on Friday, set for their fourth straight week of declines, after data showed a contraction in China's factory sector and the dollar rose against a basket of currencies.
While many have been waiting years for the China bubble to burst it seems that maybe that time is here, or at least that is what the commodity markets are telling us. Just when it seemed that commodities were ready to rebound we saw one of the world's biggest hedge funds, and outspoken China bull change, its tune.
Drivers around the world are rejoicing as oil extends its recent drop today. After pausing just above the $50.00 level for the early part of this week, West Texas Intermediate crude oil broke down to a new 3-month low on the back of a surprise build in oil inventories yesterday.