When the price of a barrel of crude hit $150 during the summer, every bank on the Street (which after this weekend’s events can now be alternatively referred to as “the Pothole”) was touting the idea that we’d see $200 any moment.
Meanwhile, US consumers starting cutting back on fuel consumption – and their staying away from the shopping malls meant our fine and friendly trading partners were spending less time counting their spare change as well. That, or there are a whole lot of evil budding oil speculators kicking themselves right now…
It appears the bubble has burst. Or was that global demand hitting a wall?
UPDATE: Barry Ritholtz believes it’s pure and simple demand destruction. And now that oil is ‘barreling’ into the low 90s, it is a signal that there is further economic erosion head.