Jump to navigation

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
Follow Futures          
       
more >>

We Asked Traders

We asked traders for their opinion on the launch of bitcoin futures

Sponsored Content

Trading

Equities.com launches unlimited trading via Tradier Brokerage, Transforming into a news & fintech portal

Featured Topics

more Commodities>>

Commodities

Energy demand steps back in play
Advertisement
more Volatility>>

Volatility

Volatility & opportunity in the energy sector
more Financials>>

Financials

Daily Price Action: E-mini S&P 500
more Options>>

Options

Trading Vertical Option Spreads

Advertisement

Crude oil's slip and slide

By Chris Mcmahon

October 15, 2008 • Reprints

The global economic slowdown has cut the legs from under crude oil prices, which have fallen to $88 per barrel in early October from a high of $147.27 on July 11.

“If we are still in this panicked fearful uncertain mode, demand will be restricted,” says Thomas Hartmann, analyst for Altavest Worldwide Trading; and even at these levels, consumers are likely to cut back. “Prices are going to fall until oil gets cheap enough to encourage demand,” he says. Pointing to a wide consolidation range created in 2006 and 2007, and noting a lack of support below $85, he says oil is heading for $70 per barrel. “When the market cannot rally off bullish news, we are in a bear market,” he says, looking back on recent hurricanes and gas shortages.

“There will be some ongoing pressure on OPEC to cut production in order to rebalance the market and try to keep a floor under price,” says Timothy P. Evans, VP and energy analyst for Citi Futures Perspective. But their influence could be waning considering that BP’s Thunder Horse platform is expected to add 250,000 barrels per day to production in 2009 and Exxon Mobil has 20 new projects with a projected 400,000 barrels per day increased capacity. “We are down a long way from the high, but the average price in 2007 was about $72,” which is his target for the month.

About the Author

Related Articles
Energy demand steps back in play
Crude shoulder season blues
Crude corrects on production pop, but demand side is looming
Oil risk factors rise
Refiners work overtime as crude inventories drop
Previous
The Rookie’s Guide to Options: The Beginner’s Handbook of Trading Equity Options
Next
S&P 500 plunges
Related Terms
oil 6597energy 3807Energies 2981Organization of Petroleum-Exporting Countries 1337crude oil prices 460BP 342Exxon Mobil 123Citi Futures Perspective 29gas shortages 11Altavest Worldwide Trading 9Thomas Hartmann 8Timothy P. Evans 5

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
images