Skip to main content

Flash crash in oil

Milan Radulovic/istockphoto

Crude did something unusual on Monday afternoon: The price in New York plummeted more than $4 (U.S.) a barrel in a matter of seconds, and then rebounded. It hit an intraday low of $94.83 at 1:53 p.m. ET – down about 4.2 per cent.

The snap-back to above $97 a barrel – also within seconds – implies that there was some sort of trading error behind the crazy move. But you can't rule out a crazy rumour either: After all, tensions are high in the Middle East these days, and China and Japan are staring each other down over disputed islands.

However, energy stocks did not seem to be affected by oil's move. Suncor Energy Inc., for example, was down 0.6 per cent in afternoon trading, but had been heading downward fairly steadily since mid-morning trading.

Story continues below advertisement

Report an error Licensing Options
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨