Crude plummets, Analyst Sees ‘Mass Hysteria’
Oct 3rd, 2008 | By Doug Casey | Category: Financial News, Oil Investment & Alternative EnergyIn the energy market Thursday, crude for November delivery plunged, closing at $93.97/barrel, down $4.56. November reformulated gasoline fell 10.5 cents, to $2.255/gallon. Many traders are throwing up their hands over the volatility.
It’s “mass hysteria,” said Neal Ryan, of Ryan Oil & Gas Partners. “We seem to be in a ’sell it all’ mode — forget what has actual tangible value.”
For oil, “action today is tied to curious rally in U.S. dollar index and the growing idea that regardless of bailout, the Dow is going to continue to sink,” said Darin Newsom, DTN senior analyst. “Hence the ‘rats leaving a sinking ship’ action by hedge funds,” he added.
“Deleveraging and demand destruction in this market remain the primary factors taking oil lower,” said Ben Smith, president of First Enercast Financial. “The liquidation of positions to pay down debt is further supporting the U.S. dollar, which is very bearish for crude,” he added.
Source: Crude plummets – Analyst sees ‘mass hysteria’
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