Just as gas prices at the pump are about to rise to their highest ever for this time of the year - and further crush an already hurting consumer's disposable income - someone has decided that enough is enough and $95/bbl WTI is just too much. Crude prices just plunged on very heavy volume - just think of the implicit tax cut we will hear of course. We note three small things: 1) how does this fit the growth story that is supposedly driving bond yields higher? and 2) there is a 4-6 week lag between WTI and retail prices so do not expect this drop to ease any pressure in the short-term), and 3) we wonder if this shift is a 'tap on the shoulder' for yet another correlation-driven trade gone wrong.
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Charts: Bloomberg