Why Crude Oil Prices Will Hit $50 by December
Posted on: Oct 17th, 2008 | By J. Christoph Amberger | Filed under Financial News, Oil Investment & Alternative Energy
Crude oil dipped below $70 yesterday. This means that there’s nothing in the way of further price declines, says J. Christoph Amberger. He says that by December OPEC will take $50 for a barrel of oil and be happy to take it.
This from Today’s Financial News:
Crude has now fallen 53 percent since surging to a record $147.27 on July 11.
Inventories are overflowing, demand is declining…and, more importantly, amateur speculators have lost their appetite.
The move…and the further decline I anticipate for the rest of the year…should clean up with the notion that the surge past $140 was due to “demand” from China and India: The first time oil was trading above $100, in the last days of 2007, it was due to a single trader upping the ante.
It was speculation all along!
With 10%-plus price fluctuations on stocks in a single day, money can be made far more easily in the equities markets these days.
The speculative oil bubble has popped… and there’s no surface tension left to form a new one any time soon.
OPEC will take $50 per barrel by December and be happy to take it.
Source: Crude oil trades below $70 — get ready for $50 per barrel
Amberger began his career as a freelance contributor to Agora publications before emigrating from Germany to the United States in 1989, when he joined the editorial board of Taipan. In 1991, he took over as managing editor for the publication and assumed responsibility as group publisher four years later. In 2007 Christoph left Taipan and founded TodaysFinancialNews.com along with its premium publications: the highly successful stock Hot Stock Confidential, the options research service TFN Strategic Trader and, most recently, Penny Stock Confidential. In November of 2009, he welcomed Contrarian Profits to the Today's Financial News network. 