Oil (West Texas) is currently trading just above $87. As long as the commodity closes below $88.42, it will enter bear market territory.
A bear market is a drop of at least 20% that was preceded by a rally of at least 20%. Below is a chart showing bull and bear markets for oil since 2009 when the Financial Crisis was coming to an end. As shown, this would be the fourth bear market for oil over the last five years, and it would already be the longest at 397 calendar days.
Over at Bespoke Premium, we have just published a B.I.G. Tips report taking a look at historical bear markets for oil. How long do they typically last, and how severe do they get? We answer these key questions in the report. Sign up for a 5-day free trial to Bespoke Premium to access the report today.