Oil under $130

Crude prices fell $5.31, to $129.18 a barrel, bringing the three-day skid to nearly $18 (the all-time record high was on Friday, at $147.27). Here's the Bloomberg story. This was no doubt a factor in the Dow climbing more than 200 points. So what gives? Beyond all kinds of technical factors and a lessening of tensions with Iran, the basic explanation is sluggish demand (even from China) that has kept buyers on the sidelines. A report earlier this week said that oil prices might have peaked at $147.27. There's no way to know where this might be headed, but for what it's worth CNBC contributor John Kilduff said that going under $131 would be a big deal. We’ll see.