Biggest weekly drop since the Persian Gulf War in 1991

Friday, October 9, 2009

Crude oil fell for a sixth day, capping the biggest weekly drop since the Persian Gulf War in 1991.

Oil is down 25 percent since November 28.

The International Energy Agency, U.S. Energy Department and OPEC lowered demand forecasts over the past month because of the contraction.

“It’s all about the economy,” said Christopher Edmonds, the managing principal of FIG Partners Energy Research & Capital Group in Atlanta. “There’s not much that can be done right now to keep prices from falling off a cliff.”

Prices have dropped 72 percent since reaching a record $147.27 on July 11.

“After the jobless number, any bulls that were left in the market will become extinct,” said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York. “There are no redeeming features in these numbers.”

Look for a massive short squeeze in oil soon.

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