There is quite clearly an oil trade today as the stock market has
rallied while oil prices have backed up considerably. Overall, oil
prices are down 2.9% for the session to $127.21, but more
significantly, they are down 4.5% from the highs they hit shortly after
the release of some bullish inventory data at 10:30 ET.
The pullback in crude prices has been exacerbated by a boost in the
dollar that is also playing a part in a broader decline across the
commodity complex today.
Of the 19 commodities that comprise the CRB Index, only two - cocoa and
lean hogs - are showing a gain at this juncture. The CRB Index as a
whole is down 1.5%.