WTI Crude Crashes Into The $50s

UPDATE: WTI just hit a $58 handle...

 

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...

 

And WTI breaks below $60 (and bounces) after multiple stop run attempts...

 

Now we have a problem...

 

Who could have seen that coming?

 

As Deutsche Bank warned last month, a drop in the oil price to $60 a barrel "is likely to push the whole HY energy sector into distress."

 

Charts: Bloomberg