Brent slides back from above $81 per barrel and here is why

Yesterday an update here in the afternoon, noted how oil prices could have further to rise and that is exactly what happened. Brent crude did eventually take out the $80 per barrel handle and the move then extended towards $81 heading into the NYMEX settlement. Well, Brent for December settlement later ended that session $2.88 higher, at $80.93. In later session US trading the price reached a high at $81.16 before turning lower into the Asian opening today. The high seen in Asia earlier was set at $81.14 and since then the price has tumbled down to a low $79.18. The exact reason for the slide would seem to tie in with that which kicked Asian equity markets lower- the prospect that the Chinese markets may not recover as much as initially thought the other week. So, we have that potential lower demand story one side of the price action and the potential supply shock out of the Middle East on the other side of the price action- ERGO more volatility to come folks and hence more opportunity, if you are so inclined. Brent for December delivery is currently trading at $79.64