Today several forecasting outfits have and are projecting very much lower prices continuing for crude oil...as the recession deepens into a protracted economic , global contraction enveloping the entire planet as 2009 comes to a close 1 year from now.
Batten down the hatches...it's time to look ahead and see what implications this event will unfold for us all in the upcoming times.
The wealth destruction has been and shall continue to be cataclysmic.
Comments are welcome!
I've bought some USO in the past couple of weeks on the hopes of not necessarily a price rise, but that oil is making a bottom. Tough time for me seeing 75-100 in 09. Maybe later in 2010. Hey, I hope you're right because that means the global economy has turned around. I think that's the key to getting oil up over 50-60/barrel.
Agreed. The price is thrown out to help balance the bid/ask for a short while until some players change their positions. Just like $200 was dangling out there long enough for them to sell their long positions.
If they were REAL analysts they would factor in two cents for the value of the falling dollar in 2009.
Price of oil will bounce around a bit for the next few months until we get Auto industry figured out. The long term trend says oil will be back up to $75/barrel in 2nd half of 2009.
Agree that all asset classes are inflated by leverage. Valuations must be reset and loans adjusted as well, so that credit can flow again. US gov't allowed credit to be issued without check and US has become addicted to it like crack.
But now US gov't wants to add debt to fund bailouts. What a joke. And it has no control over how the money is being used...a bigger joke.
How come Feds are making a public mockery of the auto industry for weeks over $34 bil and they pull off a couple of weekend behind the curtain bailouts of AIG and Citi?
I hate to think it and hate more to say it but the US is falling apart at the seams and CNN is loving it. They love to hate the US
same folks who said $200 a barrel?
works both ways
i would rather be long oil bc when there is massive inflation that will come in a few yrs after all the $$$ our govt printed or some middle eastern country goes kaboom......guess what happens to OIL!