Wild fires and wild forex moves drove oil all over the map. An out-of-control fire in the Canadian Oil Sands in a city called Fort McMurray has cut about 690,000 barrels per day out 30 percent if US Canadian Oil Sands production.
Yet it was really the dollar move and strength that had the final say. Continued worries about the Chinese economy and fear about what the Fed might do on rates is driving sentiment. Beside the type of oil that is being lost is mainly bitumen -- a heavy, thick type of crude that is very sticky that it is mainly used as tar for streets. In other words, the West Texas light crude probably over reacted to the loss of this crude oil.
Today oil will take its cue from the jobs report. If we see a strong number, it is possible the dollar may continue its rebound and be a weight for crude. If weak, the dollar should fall giving support for oil.