Crude oil fell to the lowest in more than three years on signs the U.S., the world’s largest energy consumer, may be in the longest slump since World War II.
“Demand is going down from week to week, hand-in-hand with the worldwide slowdown in economic growth,” said Gerrit Zambo, an oil trader at BayernLB in Munich.
“If sentiment gets worse and equities move lower we could see oil go to $40.”
Oil futures tumbled more than 9% Monday, coming under heavy selling pressure after OPEC left current output targets unchanged and in the face of weak economic data from around the world.
Follow crude oil futures live in the Oil Traders Blog. Every day over 7500 million dollars of crude oil are traded on NYMEX alone. If you want to be a trader specialize in the oil market.
Sentiment is the oil markets is bearish and as Marty Schwartz used to say, if a market is below the 10 day exponential moving average, look for opportunities to short.
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