Hot Market Nov. 6, 2008 – Crude Oil
After a record high of $147 a barrel in July and forecasts of $200 a barrel, crude oil endured one of the sharpest commodity price breaks in history as economic conditions weakened worldwide. Some pundits predicted crude oil prices would continue to fall to $50 and even $40 a barrel. But prices now seem to be turning back up.
- Continuous crude oil futures appear to be basing above the $60 a barrel level.
- The U.S. economy seems to be headed for an “official” recession but the prospects may not be as bad as once feared.
- U.S. employment numbers to be released Friday will provide the next gauge of economic health and should be watched closely.
- OPEC has reduced oil production quotes, which will tighten the supply outlook.
- VantagePoint has made a medium-term moving average crossover to the upside, a solid bullish clue supported by upturns in VantagePoint indicators like the neural index and the predicted difference lines.
