Brent crude oil drops $1 quick after breaking $84

Oil has taken a quick trip lower after brent fell through $84 in the past hour. That leaves oil down 31-cents on the day after rising as high as $84.74 earlier.

The selling comes despite the latest US oil rig count falling by anotehr 8 rigs. They’re now down 133 year over year and DUCs are practically exhausted. The bears would argue that drilling technology and lateral lengths have improved but I’m skeptical.

The bigger story in oil is that Iranian oil continues to flow and the US might ease of sanctions on Venezuela. The reserves in Venezuela are massive but it will take years to get oil ramped up and I’m skeptical that anyone will invest given the possibility of sanctions returning.

I worry about the economic outlook and rising diesel prices as curbs on demand.