Brent crude and West Texas Intermediate are both trading in the low $100s per barrel, but beneath that headline number, Brent just recorded its largest single-day price decline since the early days of the COVID-19 pandemic in 2020. The violent intraday swing signals that despite elevated prices, serious cracks are forming in crude oil's recent strength. The divergence between still-high spot prices and the scale of the selloff suggests markets are rapidly repricing the demand and supply outlook.
Oil at $100 is already squeezing consumers and corporate margins across every sector that moves goods or uses energy — which is nearly all of them. A single-day crash of this magnitude historically precedes either a sustained reversal or extreme volatility, both of which create risk for energy stocks, inflation expectations, and broader equities. Investors holding energy ETFs or commodity positions should treat this as a warning signal that the oil trade may be entering a new, more unstable phase.
Watch for the next U.S. EIA Weekly Petroleum Status Report (published every Wednesday) for updated crude inventory data. Also monitor the next OPEC+ ministerial meeting for any production policy shifts, and the next U.S. CPI inflation report for evidence of whether energy prices are cooling broader inflation.
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