At this point, the fall in oil prices is so severe that there can be only one explanation: market manipulation by short sellers.
Just like what we saw in the financial stocks.
Let's weigh the evidence:
Look at the charts. The fall has been so severe -- it's basically a straight down line -- that there's no way this price action could be the result of rational markets. Sure, assets should go down, but when it's that fast and disorderly, there must be external factors at play
The price makes no sense. Oil delivered a year from now is selling for so much more than oil is today, that traders are actually buying oil, renting out barges, and then just storing it so they can make a profit. In a rational market, this shouldn't work.
The price makes no sense II. Look at all these fancy models we have. This chart of Hubbert's Peak (AKA Peak Oil), for example, PROVES that we're on the downslope of global production and that prices should be rising! If only we could just mark oil prices to model, then the price wouldn't be plummeting like this
A billion cars in China. Sure, the Chinese economy has slowed down, but remember those billion cars on the road? The decline in economic activity that oil prices are forecasting is just totally unrealistic. Short sellers must be at play here, because the free market would never arrive at this price alone.
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