Crude Falls Further Below $50
Dec 3rd, 2008 | By Doug Casey | Category: Financial NewsIn the energy market Tuesday, oil prices tumbled again, with crude for January delivery closing at $46.96/barrel, down $2.32. January reformulated gasoline lost 5.29 cents, to $1.0583/gallon.
Crude has shed 14% in the past two days, and is now 68% below its record high in July.
No one has anything approximating a positive attitude at the moment. Oil demand could see an outright contraction of 0.5% next year as the global economy falls into recession, analysts at Merrill Lynch wrote.
But OPEC is apparently not getting the message. “Incredibly, the grim global macro backdrop is not stopping various OPEC producers from throwing out ‘fair’ numbers for their oil, with prices between $70 to $90 being bandied about,” wrote Edward Meir, of MF Global (NYSE:MF).
“The cartel would do well now to lower its sights to more realistic targets, and perhaps start thinking about living with $30-$40 oil,” Meir said, calling that prospect “a distinct possibility given the unprecedented global slowdown that has yet to fully manifest itself.”
Source: Crude Falls Further Below $50
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