Traders also point to new margin requirements by the CFTC, announced Thursday. However, those requirements do not go into effect until August, and the bigger factor behind the selling is concerns about a global slowdown.
West Texas crude finsished down nearly 4 percent at $98.49 per barrel, after breaking key technical levels and the psychological $100 mark. WTI has now wiped out all of its gains for the year and is down fractionally for the year and down 6 percent on the week.
Brent crude, the international bench mark, was also tumbling, down 2.5 percent at $113.18 per barrel after breaking through its 200-day moving average of $113.60. It lost 5.6 percent for the week.
Traders also exited positions ahead of the weekend elections in Europe, which could bring a fractured government to Greece and a new Socialist president to France.
But the big driver is the concern that the U.S. economy is not strong enough to withstand a weak European economy and slower growth in China. The disappointing April jobs report Friday, showing just 115,000 nonfarm payrolls were added, was the latest catalyst for a second day of heavy selling.
So, we also a 4% or more drop in gas prices (about 16 cents) If we do, great, if not, why not?
Does Obama want the lower gas prices because in the past, he said he liked higher gas prices because it increases the use of public transportation, which Obama loves.
However, if the gas prices come down a lot, like being in the $2.75 price range, Obama will take credit and he will easily win re-election.
So, as a conservative, what do I want, low gas prices and a booming economy to come or high gas prices and a very good chance that Mitt Romney will win the presidential election?
Of course, my choice is for the low gas prices and booming economy. The country is bigger and more important than who sits in the White House.
So, let's see the gas prices fall like a Secret Service agent hunting for bad guys and sexy women. Or vice versa.