This is what a bear market looks like – bullish news gets ignored and bearish news gets embraced. China’s services PMI for October expanded to the highest level in 18 months and two refinery snags are reported on the wires, and the energy complex is lower, regardless. Key support in WTI has been broken, and the sense that supplies are in the process of overwhelming all other factors is growing. The rise in Iraqi output and the emergence of China as a willing purchaser has caught the market off-guard. Iraq’s output is reaching a point where the country will finally to step up and accept a quota.
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