Oil Prices Plunge

CNN reported that it's so amazing how fast sentiment shifts," said Michael Tran, director of global energy strategy at RBC Capital Markets. "The economic slowdown fears are winning the narrative."

And despite the recent Wall Street rebound, crude has continued to tumble. That's because oil bulls were disappointed by the Trump administration's decision to grant temporary waivers that allow India, China and other countries to continue to buy oil from Iran, the world's fifth-biggest producer.

President Donald Trump said the move was designed to ease the impact of sanctions on Iran, which took effect on Monday.

"We're going to let some of the oil go out to these countries that really do need it, because I don't want to drive the oil prices up to $100 or $150 a barrel, which could happen very easily," Trump said during a press conference on Wednesday.

Trump argued that prices have "come down very substantially" recently "because of me."

Yet the oil plunge is also due to Saudi Arabia and frackers in Texas ramping up production. US oil output, led by the Permian Basin in West Texas, raced above 11 million barrels per day in August for the first time ever. The United States recently surpassed Russia and Saudi Arabia as the world's largest oil producer.