Smart money would then ask why and why now? Perhaps it's all option related...or, maybe, a strike against Iran’s nuclear capabilities is closer than the world realizes.
Chart: Crude Oil (WTI) and Crude Oil Diffusion Index (DI)
Headline: One big order, thousands of small ones, seen behind oil tumble
(Reuters) - A single large sell order in the benchmark European Brent oil market, followed by an abrupt U-turn among high-frequency traders, may have caused one of the most abrupt price routs ever, brokers and analysts said on Tuesday.
As the dust settled on Monday's four-minute, nearly $4 plunge, other possible causes such as an erroneous "fat finger" trade, a computer program run amok or a broad, rumor-driven sell-off were set aside in favor of a combination of one big trade - potentially as much as 12 million barrels worth some $1.4 billion - and tens of thousands of computerized orders.
"There was most likely a large fundamental seller in the market yesterday," said Eric Scott Hunsader, Chief Executive of Nanex, a trading consultancy that regularly conducts detailed forensic analysis of erratic market activity
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