The fall in the oil price is relentless and shows no sign of changing although a bounce of some sort, either bear closing or of the dead cat variety will inevitably happen soon. Do not confuse this with equilibrium returning, that may take longer. This morning Brent is nearly a dollar easier at $96.21 as I write and with the contract expiring tonight more volatility is to be expected. The industrial production numbers from China are the latest knife in the back for the oil price, a substantial slow down in August resulted in the lowest number since 2008 at 6.8%, worse than economists had predicted. Supply remains abundant with Libya now at nearly 900/- b/d and rising but watch out for Saudi Arabia, exports may be dropping as down at $96 patience within even Opec may be wearing thin. It will be a fascinating glimpse into politics in the organisation as to weather the old-fashioned swing producer role will be enacted again or if a little pain is needed...
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