The relationship between crude oil and equities has been amazingly tight recently – which remains a puzzle.

To make matters worse for the oil market, Iran is unleashing its massive crude oil inventories (in storage). It will take it some time to return to production levels that existed prior to the sanctions, but when it does, the markets are going to be even more oversupplied.

Crude oil turned decisively weaker in the last few days. Both fundamental and technical factors are not great.