A conceptual financial illustration titled "Crude WTI take off again ... But this time not with their Stange Bedfellow – Interesting Analysis": Main Graphic Elements:Two 3D animated characters with arms and legs are walking in opposite directions. The character on the left is a black oil barrel labeled "WTI CRUDE" with a drop symbol. The character on the right is a silver percentage symbol (%). A metal chain connecting their hands is snapping apart into broken links in the center. Background Landscape:Left Side: An oil pump jack silhouetted against a bright sunrise. Right Side: The U.S. Federal Reserve building with an American flag, set beneath an upward-trending financial line graph rising into a blue sky. Branding: Circular "Street Cents / JK Financial Inc." logo positioned in the upper-left corner.

Crude/WTI take off again … But this time not with their Rates Strange Bedfellow – Interesting Analysis

J.K. Financial, Inc. WTI Crude Rates disconnect

Oil/Interest Rate Correlation Update

Had to double check and make sure I have not beat you guys up too much lately with Black Gold/Oil/Interest rates Analysis lately …

Wanted to point something interesting out that is a change worth noting…

Remember this from our Strange Bedfellows anaysis?

It’s ok if you don’t, believe it or not, that was WAY back in early September, an eternity in this years stunningly fast moving asset markets….

This was called Strange Bedfellows because this correlation between the two Oils (Crude/WTI) and Interest rates in the form of the 10 Year Treasury, is super tight as you can see on the chart… NOT normal!…

Koyfin multi-asset line chart tracking WTI Crude Oil, Brent Crude, and the 10-Year US Treasury yield from June 15 through mid-September. WTI Crude (CL1): Blue line, trading at $102.70 (+6.92%). Brent Crude (CO1): Purple line, trading at $108.07 (+6.77%). 10-Year Treasury Yield (US10Y): Orange line, trading at 4.973% (+2.66%). Trend: After bottoming in late June and experiencing mid-summer fluctuations, all three assets break into a sharp, simultaneous upward surge through late August and early September.

Logo of JK Financial Inc featuring the text '$TREET - ¢ENTS' and a stylized 'JK' in black and green, with the website 'JKFINANCIALINC.COM' at the bottom.

Time has a way of changing things….

Correlation broken… Had to use two chart because the correlation has broken so drastically, its a very messy chart when overlayed into one.

This is WTI/Crude closing at of 10-24-26 and a new 2026 year high…

A financial chart generated via Koyfin displaying oil futures prices year-to-date through late October: Data Series & Current Prices:CL1 (WTI Crude Oil, blue line): $103.59, up +$4.12 (+4.14%). CO1 (Brent Crude Oil, purple line): $117.15, up +$3.98 (+3.52%). Chart Trends:Q1–Q2: Prices surged sharply from ~$60/barrel in January through March/May, reaching peak levels near $110–$120. Mid-Year: Values trended downward through June and July, reaching a trough near $70/barrel around July 1. Q3–Q4: Prices experienced a sustained upward trend through August, September, and October, with Brent rising toward $117.15 and WTI reaching $103.59. Branding & Logos: Street Cents logo in the upper-left corner and Koyfin branding in the lower-right corner.

This is the 2, 10 and 30 Year US Treasury Rate – NOT hanging with their Strange Bedfellow buddies

A financial line chart generated via Koyfin tracking U.S. Treasury bond yields year-to-date from January 1 through late October: Data Series & Current Yields:US30Y (United States 30-Year Treasury Yield, top blue line): 5.323%, up +3.9 bps (+0.74%). US10Y (United States 10-Year Treasury Yield, middle orange line): 5.001%, up +4.4 bps (+0.89%). US2Y (United States 2-Year Treasury Yield, bottom purple line): 4.692%, up +4.6 bps (+0.99%). Yield Curve Dynamics & Trends:General Trend: Yields across all three tenors have experienced an upward trend throughout the year, rising steadily from their Q1 lows through late September and early October peaks before slightly pulling back. Curve Structure: The chart depicts a un-inverted, positively sloped yield curve across maturities, with the 30-Year yield holding the highest level, followed by the 10-Year and 2-Year yields. Branding & Layout: Features the Street Cents / JK Financial Inc. logo in the upper-left corner and the Koyfin attribution logo in the lower-right corner.

Logo of JK Financial Inc featuring the text '$TREET - ¢ENTS' and a stylized 'JK' in the center, with 'jkfinancialinc.com' at the bottom.

Why this matters ?

There is a saying for many types of prices… Goes something like this “What fixes High Prices? High Prices!”

The embedded meaning is higher prices create a headwind/cuts back demand, thereby welcoming lower prices!

The take on this analysis? Higher prices may be finally leading to a slower Economy/Lower Rates/Cooling off!

Definitely a change worth watching/noting…We will be for sure, hence the post today!

Have a Great “Bedfellows Parting” Day!

John A. Kvale CFA, CFP

AI Content Authenticity: AI/Chat created the splash imate. All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Logo of JK Financial Inc, featuring stylized letters 'JK' and the text '$TREET - $CENTS' with a website link 'JKFINANCIALINC.COM'.

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