Is Something Blowing Up In OIL?

A week ago we warned of some insane movements and mysterious bid in OIL (the Barclays iPath oil tracking ETN) as it traded a stunning 36% rich to its underlying NAV. Well with oil resurgent today, as contracts roll, something just imploded in OIL...
As Barrons noted, the sharp performance divergence stems from the ETN’s massive price premium over the value of the index it tracks.