- Oil prices tumbled 7% Tuesday morning as bullish sentiment wanes
- Multiple developments have rattled confidence in the oil markets
- Russia said U.S. sanctions on its nation won’t affect the Iranian nuclear (BBG)
- A resurgence of Covid-19 cases in China and ongoing developments in Ukraine have also clouded oil’s outlook
- The oil market is in the midst of a liquidy crunch, opening up prices vulnerable to big swings (Bloomberg)
- Clearing houses have been increasing margins, making it more expensive to trade the same amount of oil
- Open interest has collapsed to the lowest level since 2015
- The gap between bids and offers for WTI was six cents at times on Tuesday; usually, the amount is about half that, according to Bloomberg