Brownian motions in the price of oil after Black Monday

An unusual approach to understanding the market
The observation of the price trend of the WTI and the Brent, compared to the Dow Jones index, made along the chronological series 1 January 2019 April - 20 April 2020, shows interesting aspects, for a significant difference in behavior, starting from the now famous "Black Monday" of 9 March 2020.

Until March 6, the price of the barrel for both oils remained above

What drives the price of oil

Understanding the oil market with its roller coaster

Once again, since the beginning of this year, we have witnessed a sudden drop in the price of oil, which in a few weeks has lost about 75% of its value, falling from around $ 70 to just over $ 20 per barrel. Note that the drop in price is antecedent to the present economic crisis due to the coronavirus pandemic. 

Barrel prices and Dow Jones

The first question that arises is whether there has been a strong excess of demand with respect to the offer, that is, whether it has been produced, or better exploited from the Earth, too crude compared to its demand in the world market? Or perhaps the price depends on many factors and is not simplistically referable to a balancing factor and continuous readjustment between supply and demand in the market.

Looking at the graph we can see that: