By Vatsal Srivastava,
Oil is in a bear market. Over the past few months, both major crude benchmarks - Brent and Western Texas Intermediate (WTI) - have corrected by over 25-30 percent from their 2014 peak. Interestingly, and as it often happens in the financial markets, the timing of this plunge has surprised many. The fundamental factors behind the drop in oil prices—easing - geopolitical tensions, slowing economic growth, especially in the Euro area and China, the Libyan output hitting the supply market again and the US shale oil revolution (the dominant factor) — could have been factored in well before and the plunge could have been smoother and more gradual, unlike the kind of capitulation we are witnessing now.