Because the current markets are so closely tied to the inflation trade, asset prices are falling across the board in sympathy to a sharp plunge in oil over the past couple days.
This drop APPEARS to be due to classic market manipulation, as opposed to fundamentals.
Over the past two days, Goldman has put out two hit pieces on oil. We’ve seen Euro Brent drop from $126 to about $122, and Texas Crude drop from $111 to $106.
Yesterday, Goldman launched the first hit on oil, telling clients to take profits on their oil trades. Today, one of Goldman’s sell-side energy analysts, released the latest piece stating, “We expect the oil market will experience a substantial pullback toward our $105/bbl near-term Brent crude oil price target.”
Cynics are likely to point to Goldman attempting to create attractive entry points to being long crude, but this is only speculation at the moment.