Courtesy of Mish.
Perverse Central Bank Battle
In the perverse central bank battle to defeat price deflation, the central banks are having a rough go of things.
The price of West Texas Intermediate (WTI) light sweet crude is down 6 percent today to lows last seen late 2008 and January 2009.
West Texas Crude Monthly
There has not been a WTI monthly close lower than $38.69 since May of 2004 when it closed at $37.04. A chart of Brent crude looks similar.
Brent Crude Monthly
Saudi Arabia Throws Down Challenge
Last week, oil producers met. Some member states sought production cuts. Saudi Arabia responded with an Output Cut Challenge.
Saudi Arabia agreed to output cuts if rivals inside and outside the OPEC cartel agreed to cuts. This was a change in tone from Saudi Arabia, but no agreement was reached.
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