Oil prices fall as Greece crumbles

Greece is Crumbling

Greece is crumbling and that is the bad news, but the good news is that gasoline prices are falling as well. It is all about exposure and exposure to European banks. Despite some great, non-deflationary US economic numbers, fears of the worst case scenarios from Greece steam rolled the markets once again. Stronger than expected economic reports in the US yesterday like the ISM and strong auto sales seems to suggest that despite our worst fears, the US is not in a recession. Well, not yet anyway.

Consumers are getting a boost as gas prices continue to fall! The Energy Information Agency reported that the US national average price for regular gasoline fell 7.6 cents, hitting $3.433 a gallon. Still it appears that while the market frets about Greece we may see even more selling.

My take on gas is that we could be headed much lower on the retail side. Because prices were high all summer due to a multitude of factors that have now gone away, we should get a bonus with a significant downward correction. Demand destruction that was created by the unusual factors that kept prices high like floods, war, hurricanes and tropical storms will only be corrected by a large drop in price.

Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at pflynn@pfgbest.com.

About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The information presented by The PRICE Futures Group is from sources believed to be reliable and all information reported is subject to change without notice.


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