Today Oil is rebounding from extreme oversold levels Wednesday the crazy ride continued to test new extremes on a shortened trading day as the price fell more than 9% to 35.35 a barrel. This was the its lowest close in more than 4 years. So far, the price of oil has plunged nearly 76% after reaching a record high of just over 147 in July. That`s quite a drop, for a 5 month period, isn`t it?
What might the catalyst be for a turnaround? A weak dollar and some improvement on the economic front. Our survey for the price of oil in the end of 2009 is under way and pointing to 60 to 70 dollars a barrel.
Oil has lost 33% so far in December, poised for its worst month on record since crude started futures trading on the New York Mercantile Exchange.
Word on The Trading Desks
“The United Arab Emirates’ cut is the reason we’re strong this morning,” Rob Laughlin, senior broker at MF Global Ltd
“Saudi Arabia and the U.A.E. seem to be fully compliant” Oliver Jakob, managing director of Petromatrix GmbH in Zug, Switzerland