What is Behind the Slide in Oil and Commodities?

On the morning of July 15th, the price of crude oil, the most widely watched commodity in the world, was gyrating in a narrow range, just above $145 /barrel, as dealers in London were position-squaring ahead of the Nymex opening. Just a few days earlier, Iran was conducting war games in the Persian Gulf and threatening to shut down the Strait of Hormuz, if attacked. The world watched a fireworks display of Iranian Shahab-3 missiles that were armed with one ton explosives. In the background, the global stock markets were entering into bear market territory, having lost $13 trillion of value since their peak set last October. Soaring energy and key raw material costs were squeezing profits of manufacturers, unable to pass the entire cost increases onto consumers, who were themselves getting squeezed by soaring prices for... [read full story]