My theory that the main reason for the price of crude oil is the threat to supply due to the conflict in the Middle East saw the reverse side of the equation play out today.
A threat to demand.
China announced that they are raising the price of gas, with the thought being the higher price would drive down demand.
Crude oil can go down.
China controls the price of energy by subsidizing their refiners who have to pay the world's market price for crude oil, refine it into gasoline, and then sell it at the Chinese government's dictated price.
This is costing the Chinese government billions of dollars and artificially inflates demand for energy as the real cost is not seen in the Chinese market place.
All in all it made for a great trading day in the crude oil market.
13 Tick Range Bar Charts (click to view)
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