Oil prices are holding up better than you might think considering the negative mood out of China this morning. Psychological support for oil near the $90.00 a barrel area and the gap at $89.96 has bearish traders a bit concerned.
The oil complex is in a battle between the perception traders, who look for more stimulative measures, and the reality traders, who see the global economy is slowing and demand for oil will continue to decline.
Traditional energy fundamentals weren’t bullish in 2010, but central bank interventions and bailouts did what supply and demand couldn’t — support energy prices. Analysts, however, are calling for a return to stability in 2011