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If there's any industry whose sentiment can go from hot to cold in just the span of a week, it's the oil industry.
That's how this past week has been, with both WTI and Brent – the U.S. and global benchmarks, respectively – down more than 7% since July 11 when prices logged their worst daily drop in over a year.
Naturally, this has analysts and talking heads across the industry in a fit of frenzy. After all, WTI had been on an unstoppable long-term rally, gaining over 23% since the start of the year.
Let them worry.
I'm not the least bit surprised about the recent pullback. With such an incredible run to three-and-a-half-year highs, prices were bound to get overheated and drop below the psychologically important $70 at some point.
Geopolitics have been so front-and-center lately that despite boosting prices to record highs earlier this month, they have now turned on us and dragged prices back lower.