Are the bears ready to play varsity?
Oil bulls must now put up an inspired defense in the mid $70s for Nymex crude oil (WTI) after their latest foray above $80 ended so miserably.
Just two weeks ago they seemed to be in good position to mount a run at the 87.15 high in the spot market (92.18 for the September contract) from early May. On August 03rd September barrels finished at 82.55 and the market was trending higher, i.e. up 19% since May 25th or since the bottom following the implosion after that 87.15 high print from three months ago.
More importantly, as crude oil was rising, oil volatility (OVX) was falling, from 47.2% in early June to 32.1% last Friday, a decline of 32%.