Equities Continue to Dictate Energy Direction Lower

Markets are selling off again as continued concerns regarding Europe further the flight-to-safety trade as credit spreads widen, bond yields slip toward fresh lows, and assets classes like equities and energies continue to get pounded.  Yesterday’s holiday for several European markets helped keep things somewhat quiet, but now it’s back to game-on as investors continue to take risk off the table in earnest.  Equities should continue to dictate energy’s direction and magnitude of movement near-term, and right now that direction is decidedly lower.