Oil Below 40

Saturday, October 10, 2009

Crude oil fell below 40 a barrel in New York after a report showing that the U.S. unemployment rate surged to 7.2% in December raising concerns about oil demand going forward.

Oil dropped as much as 5% after the government said the country lost 2.589 million jobs last year, the most since 1945.

Besides that, U.S. oil supplies have climbed in 13 of the past 15 weeks as the economy slowed, according to the Energy Department. Prices in New York touched 32.40 in December, the low of this downturn.

“We are going to test the December lows because the numbers we see are horrible,” said Kyle Cooper, an analyst at IAF Advisors, an energy-consultant in Houston.

It seems more and more probable that we are going to retest the lows on Oil.

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