Over the week, Libya had a strike in their biggest oil field. This field produces about 275k barrels per day. When the strike was announced, there was no surge higher. I had thought that would have happened. Two days later, the strike was resolved, and oil dropped hard. That is a bit surprising, actually.
Long term, I can actually see oil heading higher from this. We are at that point when the markets got all kinds of excited about the potential for OPEC to change their production cuts; this is where oil started to rally.
I am betting oil may go higher just because of the large sell off. But, that is temporary. Selling is the thing to do, just not at this price.