October Crude Oil Breaks Out on Syria Risks (Charts) $USO
It seems like the initial upside catalyst for oil was the political volatility and violence in Egypt in early July, and now it broke out because of the potential military action in Syria. The extreme backwardation in the oil futures curve is also related to the plunge in oil inventories (1, 2). Without extreme tapering/tightening by the Fed in the near-term, oil could attempt to test its 2008 highs, which would not bode well for the economy, credit market, stock market and oil in the end (imo). Charts via CME Group and TradingView.com.