Without a doubt, there were plenty of fundamental reasons for oil to crash. For an excellent summary, check out Jesse Colombo’s June 9, 2014 (as in you had ample warning) article HERE.
I’m also fond of the notion that it had a lot to do with the yen carry trade [what’s this?] In order to sell the BoJ on devaluing the yen and, thus, supporting the YCT, The Powers That Be had to make it politically acceptable.
The cheaper the yen gets, the more expensive oil (which is priced in USD) becomes. Remember, Japan was already reeling from higher energy expenses in the wake of the Fukushima disaster. CL had been steadily climbing ever since the nukes went offline.
What better quid pro quo than to crash oil prices in exchange for the BoJ crashing the yen?
Tin foil hat, stuff? For sure. But, it’s an interesting thought…
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