MILLBURN, N.J. ( Stockpickr) -- West Texas Intermediate crude oil prices dropped from a high of $114.80 per barrel on May 2 to a low of $74.90 per barrel on Oct. 4, representing a 35% decline. The Philadelphia Oil Service Sector and the Oil Service HLDRs ETF (OIH) declined from high to low during the same period by about 40% each. Since the U.S. markets bottomed in a rather dramatic fashion on Oct. 4, WTI crude has risen by about $10 a barrel.Clearly the oil service and integrated oil company stocks are highly correlated to each other. WTI at close to $115 per barrel was caused by panic over political uncertainty in the Middle East. The low of nearly $75 per barrel was caused by a strong U.S. dollar and fears of a global recession.
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