Insight: Oil is in another bear market - for good reason

OIL AT US$200 A BARREL? if you spend any time on Twitter, you know that oil and energy stocks have some very enthusiastic supporters, most of whom predict oil will rise to US$200 (RM882) a barrel. In fact, call options with a US$200 strike price have traded rather briskly in recent weeks.

WEST Intermediate crude oil futures fell below US$102 (RM450) a barrel Wednesday, which represents a 22% drop over the past two weeks and meeting the technical definition of a bear market.

It certainly doesn’t feel like a bear market, especially since crude is still up about 40% this year.