Hot market – Oct. 21, 2008Crude oil
Few commodities have drawn as much interest or experienced as much of a boom-bust move as crude oil has in the last year with prices bursting through the $100 a barrel level from both directions, first on the way up in February and then on the way down in September.
- Crude oil futures prices have been cut by more than half since the $147 a barrel peak in mid-July.
- Economic weakness threatens to put even more pressure on oil prices.
- Energy demand is down worldwide as many areas react to high gas prices and the global financial crisis.
- OPEC is expected to reduce its oil quotas by 1 million barrels a day or more when it meets at the end of this week, three weeks earlier than scheduled.
- Charts suggest crude oil futures may be making a stand after prices dipped below $70, but lots of traders in the options market are betting that prices could drop to $50.
Have a GREAT week!
TraderEd
