UPDATE: WTI just hit a $58 handle...
[4]
Zee overnight stabilitee (and brief dead-cat-bounce this morning) has turned into a renewed bout of selling pressure and for the first time since July 2009, WTI has broken below the $60 level. Canada Heavy is trading $42.10 (down almst $4 today!), its lowest since April 2009. Energy credit spreads are wider once again, now at +952bps.
Canada Heavy has crashed...
[5]
And WTI breaks below $60 (and bounces) after multiple stop run attempts...
[6]
Now we have a problem...
[7]
Who could have seen that coming?
[8]
As Deutsche Bank warned last month [9], a drop in the oil price to $60 a barrel "is likely to push the whole HY energy sector into distress."
Charts: Bloomberg
