Now here's a real important story. If you are an oil trader, chances are you traded the New York Mercantile Exchange West Texas Intermediate (WTI) contract. World pricing of oil by the biggest exporters was based on the WTI contract.

Now, suddenly, Saudi Arabia has decided to drop the WTI contract as the benchmark pricing unit for its oil. It is substituting a contract called the Argus Sour Crude Index, which will track the price in the physical market of a basket of U.S. gulf coast crudes, including Mars, Poseidon, and Southern Green Canyon.

What is happening in the oil market? First off, we've seen seen a high of $147.27 per barrel last July and a collapse to $32.40 per barrel on December 19 when the US economy was in shambles. Now oil has recovered to about $60.00 per barrel

Oil, of course, generally follows the growth in our economy As our economy picks up, so too does the demand for oil. The question at hand is: is our economy really growing? Paul Krugman, the Nobel Prize winning economist, says that the world economy faces 10 years of stagnation, mainly due rising unemployment in the US and Europe. David Fyfe, head of IEA's oil industry and markets divisions says: "there is oil overhanging the market." Japan's economy shrank at a record 15% pace last quarter. The European economy shrank at the fastest pace in 13 years.