WTI crude oil sinks $4 as $80 gives way

The market today is signaling that the era of easy money for governments is over. That has some serious negative implications for global growth and — by extension — oil demand.

The problem I see is that it also has negative implications for financing the green transition. The plan — particularly in Europe — calls for enormous amounts of spending on the transition but if the fiscal taps are turned off, what happens?

In any case, that’s a trade for another day. Right now the market is worried about global growth and oil is taking the hit. The fall through $80 puts oil back at January 12 levels — virtually wiping out the gains for the year.

Anyone heard from OPEC lately?